Mytrah Energy raises $60 mn from Merrill Lynch, Aion Direct

Mytrah Energy, a renewable energy-focused independent power producer, has raised a capital worth USD 60 million through non-convertible debenture from Merrill Lynch International and Aion Direct Singapore.
Together with the cash flow from existing 543 MW operating portfolio and the recently concluded USD 70 million financing, this new capital provides all of the equity required to take Mytrah Energy's generating capacity beyond 1000 MW, the company said in a statement.
The new capital provided by Merrill Lynch International and Aion Direct Singapore Pte Ltd is in addition to the existing India-listed non-convertible debenture (NCD) issued by Mytrah Energy (India) Ltd and a USD 4 million loan to Mytrah Energy Ltd, it said.

As announced in November last year, the NCD is a long-term five-year instrument with a cash coupon of 12 per cent per annum.
The new capital represents the exercise of the USD 28 million "greenshoe" option, plus a USD 32 million extension.
The proceeds from this issue will be used primarily to re-finance part of existing mezzanine facilities of Rs 110 crore and the balance for development of new wind power projects from the company's extensive pipeline, the statement said.

"As part of the USD 32 million extension to the NCD, the company has issued additional warrants giving the NCD investors the option to purchase a total of 28,27,350 shares in Mytrah Energy at a strike price of USD 1.2 per ordinary share.

"These warrants represent 1.5 per cent of the company's issued share capital post exercise and can be exercised at any time during the five-year lifetime of the NCD. This brings the total warrants in issue under this structure to 6.5 per cent of the company's issued share capital post exercise," it said.
Ravi Kailas, Chairman & CEO, Mytrah Energy Ltd said, "I am delighted to extend a warm welcome to Aion, which joins Bank of America Merrill Lynch and Apollo funds in this total USD 130 million capital raise.
"In four years, thanks to the support from our enthusiastic partners and an entrepreneurial team, our business has grown from an idea to 543 MW of operating capacity, with a future project pipeline of 3500 MW. This new capital provides the equity we need to take our capacity beyond 1000 MW.