Renewable energy company Sael and its subsidiaries have raised $305 million through the issue of green US dollar-denominated bonds.

This is the company’s first issuance in the international capital markets, providing access to a deep, alternative pool of liquidity to funds available through domestic Indian lenders, it said.

Sael and its subsidiaries have 334 MW of renewable energy assets across solar and waste to energy. The transaction was structured as a project-finance style security financing, including 100 per cent share pledges and charge over all assets, with a cashflow waterfall mechanism.

The bonds were issued at a yield of 7.8 per cent for a tenor of 7 years and are expected to be rated BB+ by Fitch. This transaction marks a major milestone in Sael’s efforts to diversify its borrowing profile.

“This is an excellent outcome for us, as this has established our international capital market presence. We will continue to strengthen our position in capital markets with strong execution and operational performance,” Laxit Awla, Chief Executive Officer said.

The company had conducted roadshows with investors from Asia, Europe and the US over the past week. It saw large demand from high quality global investors. Despite the reduction in pricing by 32.5 bps from initial guidance, orderbooks continued to grow to over $1.85 billion - implying an oversubscription of greater than six times. A total of 139 investors participated in the final issuance, with 61 per cent of the funds raised from Asia, 20 per cent from EMEA and 19 per cent from the US. The deal attracted high-quality demand, with 88 per cent of funds raised from asset managers, 7 per cent from insurance companies and pension funds, and remaining across other investors such as financial institutions and banks.

Proceeds will be used for refinancing existing debt at the restricted group and fund capex of future renewable projects of the company.

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