Greenko To Refinance Dollar Bonds Via Rupee Loans From NaBFID
Due to higher rate of interest in US for a prolonged period, the company has decided to replace the high-cost debt with low-cost rupee loans.
The renewable energy firm Greenko Group plans to refinance its $1-billion bonds maturing in 2025 via rupee loans sanctioned by the National Bank for Financing Infrastructure and Development.
NaBFID has sanctioned a Rs 6,200-crore loan to refinance dollar-denominated bonds, according to a person with knowledge of the matter, who spoke on condition of anonymity. The interest rate on the loans, the person said, would be 9.5% and the deal would conclude in three months.
According to people with knowledge of the matter, the debt is spread across 27 different special purpose vehicles set up for different renewable projects including wind, solar and hydro.
The funds, people privy to the development in NaBFID said, will be used to repay bondholders, so the company can replace five-year debt with more long-term financing.
Due to higher rate of interest in US for a prolonged period, the company has decided to replace the high-cost debt with low-cost rupee loans. For NaBFID, it's a good opportunity to deploy the funds with a AA-rated company. For such companies typically, the interest is 100 basis points over the base rate.
Right now, infrastructure companies are seeking to tie-up long-term financing at reasonable rates.
Greenko Group has an installed capacity base of 7.5 GW across solar, wind and hydro generation technologies, spread over 100 projects across 15 states. The group also claims to be the largest energy storage company. Through its pumped storage projects, it plans to deliver the lowest cost energy storage and is targeting 50 GWh by 2025.
GIC Singapore (52%), Orix of Japan (22%) and Abu Dhabi Investment Authority (14%) are the foreign equity holders in the group, while promoters Anil Chalamalasetty and Mahesh Kolli own the remaining 12%.
The founders also own AM Green Ammonia Holdings, which is in the process of setting up one of the world's largest green ammonia production facility that will begin production of 1 million tonne per annum of green ammonia in 2026, and ramp it up to 5 MTPA in the second phase by 2030.
