Greenko has raised $1 billion on Monday via an overseas bond issue, making it Asia's largest green bond till date. It will also be the largest high yield corporate bond by a privately held company in the whole world. The company obtained over subscription one and half times higher than the actual size.
The bond have been priced at 5.1% with five and seven-year maturities. Securities worth $650 million will mature in seven year while the rest liability will cease to exist in five years.
Both, US and Asian investors subscribed the papers each grabbing 40% of the issuance while European investors absorbed the rest. A quarter of the book was subscribed by 1st-time investors, including asset managers like Jupiter.
With this, Greenko, rated two notches lower than the investment grade, has become the first private company globally to offer the largest sum via corporate bond-sale in the high-yield market. Moody's and Fitch Ratings graded the bonds (P)Ba2 and BB-(EXP).
Upon closure, Greenko would have raised $2 billion of equity and debt from marque institutional investors in the last 12 months. It already has 2.5 gigawatts (GW) of operational portfolio of wind, solar and hydro power projects, making it one of the largest players in the country. By the end of the year, it plans to raise the capacity to 3 GW.
Barclays, JP Morgan, Morgan Stanley, Deutsche Bank and Investec helped the company to raise the funds.
The proceeds will be used to refinance the company's first dollar bond sale that fetched $500 million in 2014. Additionally, the sale will also help the company refinance the debt that it inherited along with the acquisition of the 350 MW India portfolio of the bankrupt Sun Edison last year.
The privately held company was started by two Hyderabad-based entrepreneurs, Anil Kumar Chalamalasetty and Mahesh Kolli. It counts Singapore’s GIC and Abu Dhabi Investment Authority (ADIA) as key shareholders. GIC owns a controlling 60% interest in the company and ADIA has close to 15%. The two founders own the rest.