JSW Hydro raises $707M from Int’l Bond Markets through debut Green Bond Issue


JSW Hydro Energy Limited has successfully priced a $ 707 million Fixed Rate Senior Secured Green 144A/Reg S Bond for a 10-year tenor at 4.125 per cent.

The proceeds from the issuance will be used towards repayment of existing green project-related Rupee-denominated indebtedness. 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 a strong investor feedback, the transaction was launched with an initial price guidance of 4.500% area and tightened by 37.5 bps to 4.125 per cent as Final pricing.

The final order book was in excess of $2.6 billion with oversubscription of >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. There was strong demand from some of the largest marquee fixed income investors globally, a company statement said.

Prashant Jain, Chairman of JSW Hydro, and Joint Managing Director and CEO of JSW Energy Limited said: “This fundraise will enable us 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.”