Greenko to Raise $1 Billion Through Asia's Largest Green Bond

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India's leading clean energy company, Greenko will raise one of the largest greenbond sale to date by a company in Asia, up to $1.1billion via an offshore dollar issue.

Less than a year after its last offering, India's leading clean energy company, Greenko, is raising up to $1.1billion via an offshore dollar issue — the largest greenbond sale to date by a company in Asia. Proceeds will be used to refinance the company's first dollar bond sale that fetched $500 million in 2014.

Additionally, the sale will also help the company refinance the debt that it inherited along with the acquisition of the 350 MW India portfolio of the bankrupt Sun Edison last year.

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Greenko's seven-year bond issue starts Tuesday. Barclays, JP Morgan, Morgan Stanley, Deutsche Bank and Investec have been mandated for the fund raising. The company is looking to raise a minimum of $950 million and a maximum of $1.1 billion, said officials on condition of anonymity as talks are still in the private domain.

The company declined to comment. Moody's and Fitch Ratings have graded the bonds (P) Ba2 and BB-(EXP), or two notches lower than the investment grade.

The issuer of a green bond publicly states that the proceeds will fund green projects related to renewable energy or emission-reduction initiatives.

Source: ET