MUMBAI: , Goldman Sachs, China Asset Management, FIL Investment (Fidelity), UBS and Schroder Investment are among the bidders for JSW Hydro Energy’s $750-million overseas green bond sale that drew offers more than four times the target, market sources told ET.
The company is said to have lowered the funding cost from its initial guidance pegged at 4.5 percent, with 10-year maturity. Those bonds likely yielded at 4.125 in the primary sale, about 38 basis points lower, dealers said. The widow for subscription was not yet closed until the publication of this report.
Individual investors and JSW could not be contacted immediately.
is planning to raise up to $1 billion in a maiden dollar bond sale, ET reported on March 25.
It is the first such offshore issue in the aftermath of the second wave of the coronavirus with a local borrower aiming to repay high-cost rupee-debt. Part of the proceeds could also be used to acquire solar assets.
Deutsche Bank, JP Morgan, Barclays, Standard Chartered Bank are among others that helped the company mop up offshore funds for the first time.
“The group has been a regular issuer in International bond markets and has strong credibility with global investors,” said Amrish Baliga, Managing Director, Deutsche Bank India. “The blowout response on the debut issuance for JSW Hydro Energy is a testament of the group’s credibility and strong assets.”
US Treasury Bills, a key global gauge used for pricing international bonds, are now yielding around 1.60 percent, nearly trebling from August last year but still less than half from the near-term peak in 2018. This is a key trigger for local companies tapping global money.
Moody’s rated JSW Hydro papers Ba1 (stable outlook) in the high-yield category.
“JSWH’s credit profile reflects the long and efficient track record of its hydropower projects, which have consistently outperformed the regulatory targets allowing the company to earn incentives and improve its cash flows,” said Moody’s.
In 2014, JSW Energy bought two hydroelectric projects from
(JPVL) for Rs 9,700 crore in cash. The company availed credit lines to fund the acquisition. There are three projects including Baspa Stage II (300 megawatts-MW) and Karcham Wangtoo (1,091MW), both in Himachal Pradesh.
JSW Energy shares rose about 2 percent Monday, closing at Rs 119.05 apiece on BSE.