One of India’s leading renewable energy companies, Greenko Energy Holdings, has successfully issued yet another green bond, making it at least the fourth green bond issue since 2014.
According to media reports, Greenko Energy Holdings managed to raise US$350 million through a green bond issuance. The dollar-denominated bonds were issued by the company to refinance its corporate debt. The company received huge interest from international investors, likely due to the healthy backing it enjoys. Singapore’s sovereign growth fund GIC is the majority shareholder in Greenko Energy Holdings while Abu Dhabi Investment Authority is also a shareholder in the company.
The latest bond issue was priced at a yield of 6.25% and received bids worth around US$900 million which is extremely attractive for international investors that are facing negative yields on long-term bonds in some major markets. The Greenko bonds would mature in three and a half years. Oppenheimer Holdings and Blackstone were among the major investors in the bond.
A similar response from investors was received for green bonds worth US$950 million issued last month. The company raised US$650 million for bonds with a 7-year maturity and US$300 million for bonds with 5-year maturity. The yield for both the bonds was reportedly over 5%. The bond issue saw three times oversubscription.
The company also raised equity funding worth US$824 million from its existing investors — GIC and ADIA — recently. The funds shall be used for the two ambitious energy storage projects in southern India.
Rating agency Moody’s assigned a Ba1 corporate family rating to Greenko Energy Holdings. Moody’s further noted that the standalone credit rating for the company is Ba3. The corporate family rating is higher than the standalone rating as the company is expected to receive support from its large investors in case of need. In its rating note, Moody’s states that the while Greenko has a large portfolio tied in long-term agreements and a significant experience in operating large-scale solar and wind energy projects there are also several concerns that represent a risk to the company. These include exposure to financially weak off-takers and the large capital investment associated with setting up renewable energy projects.
Greenko claims to have an operational renewable energy capacity of 4.7 gigawatts, including more than 2.2 gigawatts of solar power and around 1.4 gigawatts of wind energy.