Hindustan Power to issue Rs.380 crore bonds to Yes Bank

Generating major Hindustan Power on Wednesday said it will issue bonds worth Rs.380 crore on private placement basis to Yes Bank for three of its projects in Gujarat.

"The clean energy arm of Hindustan Power is set to issue secured, rated, listed, partially guaranteed, debentures of Rs.380,00,00,000 ("Debentures") on a private placement basis to YES Bank Limited for three of its AA+SO rated projects in Gujarat," the company said in a release here.

The issue is fully underwritten by YES Bank , the statement said.

Under the partial credit guarantee scheme of the state-run India Infrastructure Finance Company Limited, IIFCL will provide a "first loss" partial credit guarantee to the bondholders and has received an irrevocable back-stop guarantee with the Asian Development Bank, it added.

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, Hindustan Power said.

"With the announcement of this transaction we will be refinancing the existing debt in 3 solar special purpose vehicles (SPVs) of ours through the placement of Rs.380 crore worth of bonds with Yes Bank at an attractive coupon of 10.05 percent for a tenure of 10 years," company chairman Ratul Puri told reporters here.