Hindustan Power to issue Rs.380 crore bonds to Yes Bank

New Delhi (IANS) Generating major Hindustan Power on Wednesday said it will issue bonds worth Rs.380 crore on private placement basis to Yes Bank for three of its projects in Gujarat.

“The clean energy arm of Hindustan Power is set to issue secured, rated, listed, partially guaranteed, debentures of Rs.380,00,00,000 (“Debentures”) on a private placement basis to YES Bank Limited for three of its AA+SO rated projects in Gujarat,” the company said in a release here.

The issue is fully underwritten by YES Bank , the statement said.

Under the partial credit guarantee scheme of the state-run India Infrastructure Finance Company Limited, IIFCL will provide a “first loss” partial credit guarantee to the bondholders and has received an irrevocable back-stop guarantee with the Asian Development Bank, it added.

Placement of these bonds besides opening a new market for financing infrastructure projects, would also significantly bring down the cost of capital for the projects, Hindustan Power said.

“With the announcement of this transaction we will be refinancing the existing debt in 3 solar special purpose vehicles (SPVs) of ours through the placement of Rs.380 crore worth of bonds with Yes Bank at an attractive coupon of 10.05 percent for a tenure of 10 years,” company chairman Ratul Puri told reporters here.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of www.mangalorean.com or any employee thereof. www.mangalorean.com is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of www.mangalorean.com to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at  info@mangalorean.com. Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here