MUMBAI: India’s main renewable power producer ReNew Energy is contemplating one other greenback bond problem, geared toward refinancing its debt of round 803 megawatts (MW) of working wind and photo voltaic belongings.
This follows a $ 460 million problem in February. In October, ReNew Energy raised $ 325 million, promoting bonds to international traders. ReNew is one in every of India’s most lively greenback bond issuers.
“Whereas the corporate has approval to boost as much as $ 620 million, the proposed bond problem might be within the vary of $ 575 to $ 600 million,” mentioned an individual conversant in the plans for the society.
The bond issuance comes because the Goldman Sachs-backed inexperienced power firm introduced a merger settlement with RMG Acquisition Corp. II (RMG II), a listed Particular Objective Acquisition Firm (SPAC) to the Nasdaq, which can finally see the corporate listed on the Nasdaq inventory alternate.
The transaction offers ReNew Energy an enterprise worth of round $ 8 billion and is predicted to shut within the second quarter of this yr.
On Tuesday, Moody’s Traders Service assigned a score of Ba3 to the proposed 7.25-year senior secured US greenback notes to be issued by a newly shaped core group (RG5) of ReNew Energy. Shaped particularly to facilitate the proposed USD banknotes, the core group consists of 10 restricted wholly-owned subsidiaries, the score company mentioned in a notice. The restricted subsidiaries collectively have a capability of 803 MW of wind and solar energy crops, all of that are operational.
The proceeds from the bond issuance might be used to repay the excellent exterior debt issued by the restricted subsidiaries.
“The Ba3 score on the supplied notes displays the underlying credit score high quality of RG5, in addition to the guardian assure supplied by ReNew Energy RG5’s fee obligations for the USD notes,” mentioned Spencer Ng, vice chairman and Moody’s senior analyst.
Over 96% of the core group’s capability is contracted below long-term energy buy agreements (PPAs) that span not less than an extra 19 years, whereas the remainder of the capability of the small group, a 28 MW undertaking, is subcontracted to Maharashtra State Electrical energy Distribution Co. Ltd
“ReNew’s skill to assist RG5 will profit from the online proceeds it receives upon completion of its current IPO, in addition to its improved entry to fairness from a broader investor base going ahead.” These enhancements ought to give ReNew extra funding flexibility for its capital enlargement and enhance its skill to protect the credit score metrics that assist its credit score profile, ”Moody’s Ng mentioned.
An electronic mail despatched to ReNew Energy didn’t elicit a response.