Trust investment-led investors put ₹975 cr in GI hydro bonds
GI Hydro, a hydro power generating company formerly known as Gati Infrastructure, has raised ₹975-crore debt by issuing bonds to investors including alternate investment fund Trust Investment Advisors and global asset manager Allianz Global Investors, people aware of the matter said.
GI Hydro, which operates 110 mw hydro power projects in Sikkim, will use the proceeds to repay existing lenders, including REC Ltd and Edelweiss Asset Reconstruction Company, among others, the people said.
The company had defaulted on loans in 2016 to the existing lenders and has proposed to repay their entire dues.
The new debt facility is in the form of a three-year senior secured unrated unlisted non-convertible debentures (NCD), pegged at an internal rate of return (IRR) of 20%, one of the persons cited above said.
The issuer has a call option at the end of nine months, implying that GI Hydro can repay the bondholders after nine months of allotments.
The funds were raised in three tranches of ₹250 crore, ₹325 crore, and ₹400 crore between December 5 and December 11.
