Hind Power Projects to issue Rs 370 cr debentures for solar projects in Gujarat

Yes Bank fully underwrites issue, debentures to be listed on wholesale debt market segment of NSE

In an attempt to refinance debt in three of its AA+ SO rated solar projects in Porbandar, Gujarat, the clean energy arm of Hindustan Power Projects has entered into the credit enhanced bond market even as it is set to issue secured, rated, listed, partially guaranteed debentures of Rs 370 crore on a private placement basis to Yes Bank Limited.

Having the issue fully underwritten by Yes Bank Limited. the clean energy arm is set to issue debentures for three of its AA+ SO rated projects in Gujarat at Porbandar.

According to the company, successful placement of these credit bonds would help in releasing of long-term debt from the books of the developers into bonds thereby aid in infusing much needed financial inflow into the sector.

"Gujarat has been the hub for solar development in the country and hence continuing with our long association with the state we have placed enhanced bond market for three of our AA+ SO rated projects in Porbandar," said Ratul Puri, chairman, Hindustan Power Projects Limited.

The debentures will be listed on the wholesale debt market segment of the National Stock Exchange pursuant to and in accordance with the Securities and Exchange Board of India (Sebi), the company stated.

"Placement of these bonds besides opening a new market for financing infrastructure projects, would also significantly bring down the cost of capital for the projects," said Puri.

Under its partial credit guarantee scheme, IIFCL will provide a 'first loss' partial credit guarantee to the bondholders and has gotten an irrevocable back-stop guarantee with the Asian Development Bank (ADB).

"With the announcement of this transaction we will be refinancing the existing debt in 3 solar SPV's of ours through the placement of Rs 370 crore worth of bonds with Yes bank at an attractive coupon of 10.05 per cent for tenure of 10 years," Puri further stated.