JSW Infra raises $400 million through seven-year green bonds by 4.95%

JSW Infra raises $400 million through seven-year green bonds by 4.95%

JSW Infrastructure also became one of the few companies to successfully issue a long tenor high yield corporate bond in their debut issuance itself.

JSW Infrastructure today said it has evaluated a $400 million 144A/Reg S Senior Secured Guaranteed Sustainability-Linked Bond for a seven year tenure at 4.950 percent. The returns of this issue will be utilized to repay existing debt of the Company and its auxiliaries and as allowed by RBI under the ECB Guidelines. This fund raise marked the Company’s introduction bond issue just as the first Sustainability-Linked Bond (SLB) from an Indian ports organization, said JSW in its explanation.

This Sustainability-Linked Bond issue is guided by JSW Infrastructure’s Sustainability-Linked Bond Framework which is aligned to the International Capital Market Association (ICMA).

The company has obtained a second party opinion from DNV, describing the Sustainability Performance Target set as “ambitious” and “beyond what is considered ‘business-as-usual’.

The company engaged with multiple investors during the deal roadshow on Jan 11 and 12 across Asia, Europe and US, it said.

Backed by strong investor feedback, the transaction was launched with an initial price guidance of 5.250 percent area. Subsequently supported by robust interest from high quality real money investors, the company was able to tighten pricing by 30bps to 4.950 per cent, despite yield widening in the high yield bond markets.

“These funds will help us to realign our capital structure and bring in more funding efficiency in the coming years. The success of this SLB Bond Issue validates our stable business model with our renewed focus on Sustainability-linked business strategy,” Arun Maheshwari, joint managing director and chief executive officer of JSW Infrastructure was quoted as saying.

The deal received strong response from investors globally, resulting in the order book to peak at $1.35 billion plus with final order book in excess of $1.13 billion with an oversubscription of >3x. The transaction witnessed 46 percent participation from Asia, 30 percent from Europe and 24 percent from the US, with 92 per cent investments from funds, 6 percent from private banks and 2 percent from banks and others.

Deutsche Bank and Standard Chartered Bank acted as Joint Global Coordinators and Bookrunners and Deutsche Bank also acted as the Sole Sustainability-Linked Notes structuring agent.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
COVID death toll in India exceeds 400,000 - half died in second wave |  Coronavirus Pandemic News
Valley News – Rapid COVID Tests Coming to State Liquor Stores, Sold at Cost
The big news Wednesday was approval by the Executive Committee of $12 million in federal pandemic aid to buy about a million rapid home tests that will be sold ...
This is the end of Evergrande as China's ownership problems spread
This is the end of Evergrande as China’s ownership problems spread
Evergrande is still troubled, as are other property developers who have also run into stress. So what does it mean, and what are China’s goals here? On this ...
This summer, a new Kao the Kangaroo game will be released for the PlayStation 5, Xbox One, Switch, and PC
This summer, a new Kao the Kangaroo game will be released for the PlayStation 5, Xbox One, Switch, and PC
Join Kao on his biggest adventure yet! This time the brave kangaroo has to find his missing sister and solve the mystery of what happened to his long-gone ...
Future Enterprises agrees to sell stake in insurance JV to Generali
Dovish Thailand seen among last to rise as Fed signals takeoff
Confronted by a subdued tourism recovery, tighter social distancing restrictions and weak domestic investor demand at a time of high bond supply, the Thai ...
In the third quarter, Wockhardt reported a net profit of Rs 1.77 crore
In the third quarter, Wockhardt reported a net profit of Rs 1.77 crore
“The objective of the Issue is to, inter alia, meet the company’s financing needs for repayment of subordinated debt due, financing research and development ...
US consumer protection agency adds stress on banks over fees
Day-Trader interest in put options raises capitulation concerns
“For the first time since the pandemic started, mentions to put options have overtaken references to calls,” according to Ben Onatibia and Giacomo Pierantoni ...
Crypto leads to massive increase in online scams
Crypto leads to massive increase in online scams
Last year, more than 95,000 people reported losing around $770 million to fraud schemes on social media. The big picture: Fraud cases from social media now ...
Tata Sons president says, Takeover complete, happy to have Air India back
Tata Sons president says, Takeover complete, happy to have Air India back
“Totally delighted that the takeover process of Air India is complete. We are very happy to have Air India back in the Tata Group. We look forward to working ...
Picasso’s heirs ride the ‘cryptographic’ wave with digital offer
Picasso’s heirs ride the ‘cryptographic’ wave with digital offer
Cross this notion with cryptocurrency technology known as the blockchain and you get NFTs. They are effectively digital certificates of authenticity that can ...
Economic indicators flash early warning signal for India's recovery
Investors look to reduce portfolio risk as Fed hawkish rules markets
“I continue to believe you have to be really conservative in your portfolio today,” said Rick Rieder, BlackRock’s chief investment officer of global fixed ...
Show next
We will be happy to hear your thoughts

Leave a reply

Compsmag - Latest News In Tech and Business
Logo