The proceeds from the issuance will be used towards repayment of existing green project-related rupee-denominated indebtedness, it said.
The green bond framework for the company's debut bond transaction has been reviewed by Sustainalytics, who has issued a second party opinion.
The company engaged with several investors on a global deal roadshow across Hong Kong, Singapore, London, New York and Los Angeles.
Backed by an extremely strong investor feedback, the transaction was launched with an initial price guidance of 4.500 per cent area and tightened by 37.5 bps (basis points) to 4.125 per cent as final pricing.
The final order book was in excess of USD 2.6 billion with oversubscription of more than 3.7x. The transaction witnessed 64 per cent participation from Asia, 14 per cent from the US and 22 per cent from EMEA with 82 per cent investment from long haul funds, 17 per cent from financial institutions (including Sovereign Wealth Funds), and 1 per cent from private banks, it said.
There was strong demand from some of the largest marquee fixed income investors globally, it added.
Prashant Jain, Chairman of JSW Hydro, and Joint Managing Director and CEO of JSW Energy said, We are overwhelmed by the strong response from international bond investors in our debut issuance."
Jain further said, this fundraise will enable the company to further strengthen and diversify our sources of funding and we look forward to strengthening our partnership with global investors as we continue to build and grow our renewable energy business.
From a total installed capacity of about 4.6 GW today, where about 30 per cent is from renewable sources, we currently have visibility on a pipeline of about 2.6 GW of renewable projects comprising of wind, solar and hydro which are likely to get commissioned over the next 24 30 months. On completion of these projects, the share of renewables in our portfolio will be over 55 per cent, he said.
JSW Hydro Energy has an installed generation capacity of 1,391 MW. The group as a whole has 4,559 MW capacity, of which 3,158 MW are thermal power and 10 MW are solar power.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.