Continuum Energy Raises $350 Million For C&I Renewable Market In India

Highlights :

  • With 1.3 gigawatts (GW) of operating and near operational capacity and an additional 1.2 GW projects for near-term construction, Continuum is well placed to tap into rising demand for RE.

Singapore-based Continuum Green Energy Ltd, has announced that it has raised $350 million in debt by issuing senior secured floating rate notes to two international institutional investors. The notes have a tenure of 3.5 years and the proceeds will be partly used to refinance debt and finance project construction. The floating rate is linked to the Secured Overnight Financing Rate. The firm has also stated that it has the option to issue a further $50 million on fulfilling certain obligations. Previously, Continuum also saw participation from IFC, the World bank’s private sector financing arm, for a green bond issue out of Singapore.

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Currently, almost all the projects of the firm are concentrated in Gujarat, Madhya Pradesh and Tamil Nadu respectively.

The funding announcement comes shortly after GE Energy Financial Services (GE EFS) bought a 49% stake in Continuum Green Energy’s 148.5 MW Morjar onshore wind project in Gujarat. Continuum Green Energy is majority-owned by a global infrastructure fund managed by Morgan Stanley Infrastructure.

The fund raise will be seen as yet another vindication of the high potential that is finally being translated into reality in the corporate and industrial segment for renewable energy, with positive policy interventions that will create both pressure and demand for higher renewable energy. It also marks out the Indian market as a market able to raise funding despite the existing volatility in global markets, with the right kind of projects.

Continuum, with 1.3 gigawatts (GW) of operating and near-operational capacity and an additional 1.2 GW projects planned for near-term construction in India, is thus set to expand the increasingly crowded C&I segment in a big way.

Speaking about the fund raise, Arvind Bansal, Founder and CEO of Continuum said, “Raising of funds from marquee investors re-affirms the faith of investors in Continuum’s business model and the company’s focus on building high-quality projects. With these funds, the company aims to expand its portfolio to 2.5 GW, majority of which are wind and solar hybrid projects, servicing commercial & industrial (C&I) consumers, enabling them to meet their sustainability goals economically,”

Raja Parthasarathy, Managing Director at Morgan Stanley Infrastructure Partners and a member of the board at Continuum, said, “We are happy that Continuum receives this investment and are excited for the growth that the company may realise while deepening their franchise with C&I customers and wind-solar hybrid offerings. This marks another big milestone in our now 10-year fruitful partnership with Continuum.”

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