Greenko, Muthoot Finance raise $1.2-billion debt overseas

debt markets last week to raise up to $1.25 billion between them through US dollar bonds as global investors seek exposure to India's growth.

Renewable energy firm Greenko Energy Holdings raised around $1 billion from investors, while Muthoot Finance raised $250 million. Greenko's bond was priced at 7.25%, tighter than the initial 7.62% target. The bond, issued under a dual Reg S and Reg S 144A structure, is backed by Greenko Wind Projects (Mauritius) and drew over $3 billion in investor interest. However, the company opted to retain $1 billion, according to two sources.

The 3.5-year senior secured bond's proceeds will refinance Greenko's existing $750 million USD bond due in April and support rupee-denominated lending via Pinnspuram SPSP Company. The remaining funds will go toward repaying outstanding debt and general corporate purposes. A Greenko spokesperson declined to comment.

Greenko, which operates 7.5 GW of renewable capacity and is developing 10 GW of pumped storage projects across six states, is also in talks with private credit funds to raise $850 million for a buyout of Orix's stake in the company. BlackRock and Nomura are among the global financiers being tapped to fund the $850-million fundraising by Greenko's promoters, Anil Chalamalasetty and Mahesh Kolli, to buy out Japanese investor Orix's stake in the company, as reported on March 7.
The fundraise is likely to close next week. Earlier this year, Orix signed a share transfer agreement in January to sell its entire stake in Greenko to AM Green