JSW Hydro Energy Limited raises USD 707mn from International Bond Markets through debut Green Bond Issue under 144A / Reg S format

 

New Delhi: JSW Hydro Energy Limited (“Company”), which has the largest hydro power portfolio by capacity in the private sector in India, has successfully priced a USD 707 million Fixed Rate Senior Secured Green 144A/Reg S Bond for a 10-year tenor at 4.125%.

The proceeds from the issuance will be used towards repayment of existing green project-related Rupee-denominated indebtedness. The Green Bond Framework for the company’s debut bond transaction has been reviewed by Sustainalytics, who has issued a Second Party Opinion.

The Company engaged with several investors on a global deal roadshow across Hong Kong, Singapore, London, New York and Los Angeles. Backed by an extremely strong investor feedback, the transaction was launched with an initial price guidance of 4.500% area and tightened by 37.5 bps to 4.125% as Final pricing.

The final order book was in excess of USD 2.6 bn with oversubscription of >3.7x. The transaction witnessed 64% participation from Asia, 14% from the US and 22% from EMEA with 82% investment from long haul funds, 17% from financial institutions (including Sovereign Wealth Funds), and 1% from private banks. There was strong demand from some of the largest marquee fixed income investors globally.

As JSW Energy embarks on a journey to transition to become predominantly a Renewable Energy player, a strong investor response globally for its maiden international bond offering has come as a shot in the arm.

Prashant Jain, Chairman of JSW Hydro, and Joint Managing Director and CEO of JSW Energy Limited said: “We are overwhelmed by the strong response from international bond investors in our debut issuance. We are pleased that global investors have understood and appreciated our unique credit story. This fundraise will enable us to further strengthen and diversify our sources of funding and we look forward to strengthening our partnership with global investors as we continue to build and grow our renewable energy business. From a total installed capacity of about 4.6 GW today, where about 30% is from renewable sources, we currently have visibility on a pipeline of about 2.6 GW of renewable projects comprising of wind, solar and hydro which are likely to get commissioned over the next 24 – 30 months. On completion of these projects, the share of renewables in our portfolio will be over 55%.”