Power News We love to talk!
Hero Future Energies, a Delhi-based renewable energy firm, is in talks with investment bankers to explore the possibilities of tapping the dollar bond market to raise funds, sources aware of the matter have confirmed with FE.
According to sources, the firm might be eyeing close to $400-500 million dollars. “The tenure of the bond is likely to be close to five years. If the issuance goes through, it will be a debut issue by the firm in the overseas bond market. The issue is likely to be a high yield one,” said an investment banker.
Sources also indicated that the firm might issue the bonds via an overseas entity. This could not be independently verified by FE. An email sent to Hero Future Energies seeking confirmation of the story and further details remained unanswered till the time of going to press.
In January 2017, the company reportedly secured a $125 million funding from International Finance Corporation for building 1.5 GW of green power capacity in India. Clean energy firms have been active this year in tapping the foreign currency bond market to raise funds. Greenko Dutch BV raised $1 billion, ReNew Power Ventures raised $475 million, while Azure Power raised $500 million.
Issuances from India have received significant responses from investors considering the limited supply from the country relative to global volumes.Indian firms and banks have raised a record $12 billion in 2017 via foreign currency bonds. The last major foreign currency bond issue was from Export-Import Bank of India which priced its Formosa bonds at 100 basis points over the three-month dollar Libor.
A Formosa bond is a bond issued in Taiwan denominated in a currency other than the Taiwan dollar. In the remaining three months of this year, a few banks and low-rated firms are likely to approach the market, according to investment bankers. These include large size private and state run banks as well as first time low-rated issuers.
- BHEL commissions another 250 MW eco-friendly unit in Gujarat Read more
- Odisha seeks Rs 3,500 cr assistance via Niti Aayog Read more
- Narendra Modis power reforms fuelled by bonds as bad debt stymie loans Read more
- Suzlon Energy bags order to set up 90 mw wind energy project for ReNew Energy Read more
- HPCL to take 8 pc stake in Petronet's Gangavaram LNG terminal Read more
- Australian green lobby drags Adani to court over mine project Read more
- OilMin wants a united front to beat China in Myanmar Read more
- Indraprastha Gas plans to buy out its partners for expansion Read more
- CAG seeks pending information on KG-D6 block Read more
- Ratification of climate accord to bring more focus on India's renewable sector: Bridge to India Read more