Hyderabad-based and London's AIM-listed independent power producer Mytrah Energy (India) Ltd has raised Rs 430 crore ($70 million) in debt from Merrill Lynch International and funds managed by affiliates of Apollo Global Management LLC, according to a statement.
The new finance takes the form of Rs 397 crore (about $65 million) India-listed non-convertible bond issued by Mytrah Energy and $5 million in loan. The bond is a long-term five-year instrument with a cash coupon of 12 per cent per annum, it added.
The power producer has a green-shoe option to raise additional Rs 170 crore (nearly $28 million), which will take the total amount being raised to Rs 600 crore (approximately $98 million), the statement said.
Of the total, nearly Rs 90 crore of the funding to Mytrah that has been provided in the form of bonds will be used to pre-pay IDFC’s mezzanine funding which matures next August.
While the remaining will be used to develop new wind power projects to its existing portfolio of 552 MW to eventually reach the target of 1000 MW.
“At Mytrah, we have built an operating portfolio of 524.85MW since inception only four years ago. This asset base is performing very well, and, despite relatively low winds in the first half of 2014, I am pleased to say that the overall monsoon season has been in line with those we have experienced previously,” Ravi Kailas, chairman and CEO, Mytrah Energy Ltd, said in the statement.
Mytrah Energy has an operating portfolio of over 542 MW across six states—Andhra Pradesh, Tamil Nadu Karnataka, Maharashtra, Gujarat and Rajasthan.
Mytrah’s parent got listed on the AIM in 2010 raising $80 million from institutional investors, Capital Group, BlackRock Inc and Henderson Global Investors.
(Edited by Joby Puthuparampil Johnson)