Continuum energy to raise $650 m via bonds
Continuum Green Energy, a renewable energy generator, is seeking to raise about $650 million in bonds for seven years to refinance its existing debt, said people with knowledge of the matter. The company is likely to appoint Deutsche Bank, HSBC, JPMorgan, and Standard Chartered Bank as arrangers.
The fundraise is likely to refinance $561 million in bonds raised by its subsidiary, Continuum Energy Levanter Pte Ltd, which were raised at 4.5% and due in February 2027. However, the all-in cost of the bond is almost double the 4.5%,prompting the company to refinance the earlier tranche, a person cited above said.
The company had done a non-deal roadshow in Singapore in mid-April to gauge investor interest, one of the persons cited above said.
HSBC, Standard Chartered Bank and JP Morgan declined to comment, while Continuum Green Energy and Deutsche Bank did not respond to ET's request for comment.
The bond refinance is planned ahead of Continuum Green Energy (India) Ltd's proposed ₹4,000-crore public offering.
The renewable energy company, founded by IIM Ahmedabad classmates Arvind Bansal and Vikash Saraf, has signed a term sheet with Global Environment Fund and UK-based Just Climate to raise $150 million, as reported by ET on May 22. The company, with a 1.3 GW operational portfolio, is in talks with Kotak Securities as lead arrangers for its IPO.
The company plans to refinance the $561 million Levanter subsidiary bonds either by issuing another public issue of dollar bonds or it would tap the local banks with
