The Sustainable and Affordable Energy for Life (SAEL) Industries Limited (along with five completely owned subsidiaries) has issued its first US-dollar denominated bonds in the international capital markets. The company has issued green bonds worth $305 million.
The issue was oversubscribed by nearly six times and 95 per cent was allocated to long term investors. The bonds are rated “excellent” by Sustainable Fitch. They are expected to receive a BB+ rating from Fitch.
SAEL holds 334 MW of renewable energy assets, including solar and waste-to-energy projects. Significantly, this marks India’s first renewable energy issuance that includes waste-to-energy assets. The transaction was designed as a project-finance style security, featuring 100 per cent share pledges and a charge over all assets, along with a cashflow waterfall mechanism. The bonds were issued with a yield of 7.80 per cent and have a 7-year tenor, with a weighted average life of approximately 5.3 years. This transaction represents a significant milestone in the company’s efforts to diversify its borrowing profile.
The SAEL group is a prominent biomass and solar power producer. In January 2024, they secured $1 billion funding to increase renewable energy investments. Further, in March 2023, they successfully commissioned a 28 MW DC solar power plant.
