Article/Intelligence
GIC-Backed Greenko Energy Mandates Nomura to Place INR 6B Debt at ~16% IRR for Refi
GIC-backed Indian renewable power producer Greenko Energy Holdings has mandated Nomura to place INR 6 billion ($68.4 million) secured debt at around 16% internal rate of return, with proceeds intended for refinancing some of its debt, two sources familiar and a source briefed on the development said without specifying details of the debt to be refinanced.
Nomura has agreed to fully underwrite the debt, and is also running the deal; a few domestic private credit funds are also considering participation in the transaction, all three sources said.
Greenko Energy’s promoters Mahesh Kolli and Anil Chalamalasetty will also provide personal guarantee for the debt, a fourth source familiar said.
The domestic private credit investors who are evaluating the transaction are seeking a “stronger” security structure for the debt to be issued as the company’s debt level remains high, the fourth source familiar said. However, Octus is not able to ascertain details of the security currently offered.
According to Greenko Energy’s July released annual earnings for the year ended March 31, 2025, its total debt increased to $7.37 billion in FY25, from $5.26 billion in the previous year, resulting in total debt-to-EBITDA ratio rising to 15.3x as of FY25, from 10.8x last year, while cash interest coverage declined to 1x, from 1.7x in FY24.
Singapore sovereign investor GIC holds a 57.06% stake in Greenko Energy, which is incorporated in Mauritius. Greenko Energy owns major renewable energy companies in India and has an operating capacity of 11 gigawatts, or GW, renewable energy including solar, wind and hydroelectric power generation.
In an Aug. 14 note, Moody’s Ratings expects Greenko Energy’s financial metrics to remain negative for the year through March 31, 2026, as debt level continues to rise with the progression of its capital spending programs. The rating agency also noted uncertainties around the timing and scale of incremental revenue from Greenko’s two key projects— first pumped hydro storage project in Andhra Pradesh, India (AP PHSP), and Teesta III.
The next key maturity for Greenko Energy is its $940 million, 3.85% senior notes due March 2026 issued at Restricted Group 1, or RG1. In the July earnings report, the company said it has initiated refinancing process for this debt.
Greenko and Nomura did not immediately respond to Octus’ emails requesting comments.
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