JSW Hydro Energy today said it has raised $707 million (Rs 5,185 crore) through fixed-rate senior secured green bonds for a 10-year tenor at a rate of 4.125%.
The proceeds will be used towards clearing rupee-denominated indebtedness arising from greenfield projects.
A statement said that the firm had engaged with several investors on a global roadshow across Hong Kong, Singapore, London, New York and Los Angeles. Based on positive investor feedback, the transaction was launched with an initial price guidance of 4.500%, which came down by 37.5 basis points to a final pricing of 4.125%.
The company claimed that the final order book was in excess of $2.6 billion with oversubscription of more than 3.7x. The transaction witnessed 64% participation from Asia, 14% from the US and 22% from EMEA (Europe, the Middle East and Africa) with 82% of the investment coming from long haul funds, 17% from financial institutions (including sovereign wealth funds) and 1% from private banks.
Parent JSW Energy has embarked on a journey to become predominantly a renewables energy player. It said that a strong investor response globally for its maiden international bond offering has come as a shot in the arm.
“This fundraise will enable us to further strengthen and diversify our sources of funding,” said Prashant Jain, chairman of JSW Hydro and joint managing director and chief executive officer of JSW Energy.
JSW Energy, which has a total installed capacity of about 4.6 gigawatt (GW), claims that renewables account for 30% of its portfolio. It has a renewables energy pipeline – solar, hydro and wind -- of 2.6 GW, which will take the total share of renewables energy in its portfolio to over 55%.