Greenko Wind Projects raises $750 mn through dollar bonds

Three-year paper priced at 5.5%

Greenko Wind Projects (Mauritius) Ltd (GWPML) on Wednesday raised $ 750 million through dollar bonds from the international market to finance energy storage project in India.   

The offering by GWPML, an indirect subsidiary of Greenko Energy Holdings, was priced at 5.5 per cent. The proceeds from the three-year paper will be invest in Rupee-denominated debt of an Andhra Pradesh (AP) pumped-storage project Special Purpose Vehicle - Pinnapuram SPSP Company.

Pinnapuram SPSP Company will use money to refinance its existing borrowings, create an interest service reserve account and fund the remaining capex for the AP pumped-storage project.   

Sameer Gupta, MD and Head India DCM at Deutsche Bank said “this was the first international green bond issuance for funding an energy storage project in India. The fund raise is a testimony to the robust credit quality of the Greenko Group and their strong track record in the international debt capital markets”.

Fitch Ratings has assigned a rating of 'BB' to the proposed US dollar senior notes of Greenko Wind Projects (Mauritius) Ltd. The notes are rated at the same level as Greenko, are guaranteed by Greenko.

The Negative Outlook on Greenko's rating reflects a sharp increase in its trade receivables over the last two years and the lack of clarity over the timing and quantum of improvement in the receivables, Fitch said.

Greenko's rating is underpinned by the group's diversified portfolio of 5.2GW of renewable-power assets. The capacity is sold under long-term power purchase agreements (PPAs) that provide fixed tariffs and stable volumes.

The rating also takes into account Greenko's strong access to funding and liquidity support due to strong shareholders, including GIC, Singapore's sovereign wealth fund, Abu Dhabi Investment Authority (ADIA) and ORIX Corporation.