MUMBAI: Indian renewable energy (RE) firm SAEL Ltd is planning an inaugural dollar bond sale targeting up to US$500mil, according to people familiar with the matter.
This exercise joins other borrowers to fuel Asia’s hottest high-yield market in five years.
The company, which develops sustainable energy projects such as solar plant constructions, aims to launch the debut offering by the end of June, with proceeds to be used for business expansion and debt refinancing, the people familiar said.
The company is in talks with a group of foreign banks to arrange the bond sale, seeking a tenor in the range of five to seven years, the people added.
SAEL’s planned note sale is set to add to a recent issuance boom in Asia and worldwide.
Issuers globally rushed to tap the dollar debt market last week on lower borrowing costs and risk-on sentiment. Indian corporates, in particular, have led Asian junk dollar bond sales to its first revival in five years, with strong investor appetite.
Adding to the bond issuance spree is Export-Import Bank of India. The lender plans to raise US$3.5bil via debt this financial year, with foreign currency notes likely accounting for the bulk of it, said managing director Harsha Bangari.
A spokeswoman from SAEL declined to comment when reached by Bloomberg News.
The offering also comes amid India’s push to ramp up the RE sector.
India aims to nearly triple its clean energy capacity by the end of the decade to decarbonise its fossil fuel-driven economy. — Bloomberg
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