Greenko, a renewable energy company, has secured Rs 6200 crore from the National Bank for Financing Infrastructure and Development (NABFID) to prepay over $1 billion in dollar bonds due next year. This move aims to reduce overseas liabilities amid high foreign interest rates.
NABFID’s loan will help Greenko repay bonds maturing in January and July 2024. The funds will support Greenko’s operational projects across India, utilizing a co-obligator structure where all 25 group companies support each other financially.
Greenko operates 7.5 gigawatts of solar and wind power across 15 states and manages over 100 projects, mainly through special purpose vehicles (SPVs). The NABFID loan will finance these projects, enhancing their credit rating to AA.
The loan, with a single-digit interest rate, offers a flexible tenure from 10 to 23 years, unlike traditional bank loans. Greenko plans to use the funds to repay $500 million in January and $535 million in July 2024 bonds issued by its overseas subsidiaries.
Greenko frequently accesses the overseas bond market to fund sustainable projects. However, it faces challenges, as Fitch revised its long-term Issuer Default Rating (IDR) outlook to negative, indicating potential financial strain through FY26 due to acquisitions and new project investments.
