Greenko arm cancels dollar bond issue, to tap bank loans
Greenko Mauritius, a subsidiary of Greenko Energy Holdings, has decided not to proceed with its planned dollar bond issuance that had sought to refinance a $425-million bank loan.
The company, which is into renewable energy sources, will now seek alternative bank borrowing instead, Fitch Ratings said, while withdrawing the 'BB' rating assigned to the proposed bond.
Initially, the proposed notes, rated 'BB' by Fitch and 'Ba2' by Moody's, were expected to price a 3.5-year bond under 7%. However, earlier this year, Greenko Mauritius deferred the bond due to interest rate volatility. The $425-million bridge loan remains outstanding and is due by September 30, 2024.
Greenko Mauritius has secured a ₹6,200-crore credit line from the National Bank for Financing Infrastructure and Development (NaBFID) to partially refinance its offshore debt, as reported by ET on July 8.
«Fitch is withdrawing the Greenko Mauritius notes' rating as the issuance did not proceed as planned. Greenko Mauritius will no longer issue US dollar notes to refinance the $425 million bank loan and is in the process of seeking other bank borrowings instead,» Fitch Ratings said in a note issued Thursday.
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