Continuum Wind Energy Raises USD 560 Million In Green Bond Sale

Continuum Wind Energy, a Morgan Stanley-controlled company is in international markets with a USD 560 million dollar-denominated green bond issue, according to two merchant banking sources.

Continuum Green Energy is an India focused renewable energy group founded in June 2009.  It has a current portfolio of about 2 GW out of which 757.4 MW are already operational and 428.0 MW are in construction. Continuum’s current projects are located in the states of Gujarat, Maharashtra, Madhya Pradesh, and Tamil Nadu.

The company is in the dollar bond market with a 6-year-green bond issue worth USD 560 million. The weighted average life of the bond is 5.1 years, one of the sources told PTI on Tuesday.

IFC Washington is an anchor investor to the issue for which the initial price guidance was 4.875 percent over the US treasury.

Although the issue is still open given the demand with the order bookcrossing USD 3.2 billion, we have tightened the final price guidance to 4.5 percent, the second merchant banking source said, adding the issue will be closed by the end of the US market hours today.

Deutsche Bank is the lead banker for the transaction, while other merchant bankers include StanChart, HSBC, JP Morgan, and Emirates.

Since January, domestic issuers have raised USD 2 billion in forex debt with the Exim Bank opening the market with a USD 1 billion in the first week of January, which was soon followed by SBI with a USD 600 million issues, Adani Ports (USD 500 million) and PFC (USD 350 million).

Companies are tapping the forex debt market given the record low-interest rates to pay back the higher-priced loans. The bond is rated BB+ by Fitch and Ba2 by Moody’s.

Continuum is now majority-owned by North Haven Infrastructure Partners, a USD 4-billion global infrastructure investment fund managed by Morgan Stanley Infrastructure Partners that focuses on long-term investment in infra assets across the globe.

That apart, the firm enjoys the support of many leading banks and financing institutions such as the State Bank, the IFC, Power Finance Corporation, Indian Renewable Energy Development Agency, India Infrastructure Finance Company, PTC Financial Service, India Infradebt, Tata Capital, L&T Infrastructure Finance and L&T Fincorp, according to its website.

Over the years, Continuum has become one of the largest suppliers of renewable power to corporates in the commercial and industrial segments and its current customer list is over 100 from diverse industries.

Continuum owns and operates 386.2 MW of wind projects in Gujarat, Maharashtra, and Madhya Pradesh, and is constructing a 400 MW wind project in Gujarat under an agreement with the Solar Energy Corporation.

It also operates 371.2 MW of wind and solar power projects in Tamil Nadu and Gujarat, supplying over 100 crore units to industrial customers.