CLP India today said it has raised Rs 600 crore through green bonds to fund its wind energy projects.
The Hong Kong-listed company’s Indian unit raised Rs 600 crore through five year redeemable non-convertible debentures that carried a coupon of 9.15 per cent, CLP India said in a statement.
The bonds were issued by CLP Wind Farms in three series of equal amount, maturing every April in 2018, 2019 and 2020.
They are assigned an AA rating by India Ratings and Research Private Ltd.
CLP is the largest wind power developer in India with committed wind projects of more than 1,000 MW, spread across six states.
“The proceeds from these bonds will be used for funding the capital expenditure of its projects in the renewable space,” it said.
CLP Wind Farms is the first mover to issue Corporate Green Bonds in the Indian power sector.
“This move will help CLP sustain its expansion of the renewable energy portfolio in alignment with the company?s vision to lower carbon emission footprint,” it said.
Standard Chartered Bank, IDFC Limited and The Hongkong and Shanghai Banking Corporation Limited are the lead arrangers for the bond issuance.
Rajiv Mishra, Managing Director, CLP India, said, “Through the issuance of these bonds we plan to fund the expenditure of new projects in the renewable energy space and thereby support CLP’s growth plans for India.
“There is enormous potential in the Indian renewable power market and we see ourselves making a vital contribution towards the government?s objective of increasing capacities in clean energy.”
Samir Ashta, Director – Finance and Chief Financial Officer, CLP India, said the company was the first to introduce asset specific bonds in the Indian power sector for its Jhajjar power plant earlier this year.
“The structure of these bonds achieves the twin objectives of accessing long term funds at competitive rates for us and an attractive long term investment opportunity for investors,” he added.
CLP India is the wholly-owned subsidiary of CLP Holdings Ltd, which is listed on the Hong Stock Exchange and is one of the leading investor-owned power businesses in Asia.
It is one of the largest foreign investors in the Indian power sector with a total committed investment of over Rs 14,500 crore.
CLP entered India in 2002 with the acquisition of a 655 MW gas fired power plant in Bharuch, Gujarat.
In addition to this, CLP India owns and operates a 1,320 MW supercritical coal-fired power plant in Jhajjar, Haryana.
It is also one of the largest wind power developers in India with committed wind projects of more than 1,000 MW that are spread across six states.