The Clean energy arm of Hindustan Power achieved the distinction of becoming the first and largest Indian solar player to enter the credit enhanced bond market having the issue fully underwritten by YES Bank limited.
With this, the clean energy arm is set to issue secured, rated, listed, partially guaranteed, debentures of Rs 380 crore ('Debentures') on a private placement basis to YES Bank limited for three of its AA+(SO) rated projects in, Gujarat. These debentures will be listed on the wholesale debt market segment of the National Stock Exchange of India limited (‘NSE’) pursuant to and in accordance with the Securities and Exchange Board of India (Issue and listing of Debt Securities) Regulations, 2008 (as amended). Under the partial credit guarantee scheme of IIFCl, IIFCl will provide a ‘first loss’ partial credit guarantee to the bondholders and has gotten an irrevocable back-stop guarantee with the Asian Development Bank.
Placement of these bonds besides opening a new market for financing infrastructure projects would also significantly bring down the cost of capital for the projects.
Speaking on this occasion, Hindustan Power projects Chairman Ratul Puri, said, “The clean energy arm has had many firsts in the Indian solar sector. We are happy to continue with the tradition and be the first and largest solar player to enter the credit enhancement bond market. We are thankful to IIFCl, ADB and YES Bank limited and are happy to partner them in opening up the long-term capital market funds for infrastructure sector in the country.”