Continuum Wind Energy to raise USD 560m in green bond sale

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

The city-based green energy player that began operations in June 2009 has grown through a string of acquisitions of wind and solar assets, and currently has a portfolio of about 2 gw, of which 757.4 mw are operational across Gujarat, Maharashtra, Madhya Pradesh, and Tamil Nadu; and 428 mw in the construction stage.

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 on Tuesday.

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

Even though the issue is still open given the demand with the order book crossing USD 3.2 billion, we have tightened the final price guidance to 4.5 per cent, 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 issue, 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.

Via: PTI

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