The credit line acquisition by Greenko Group is a financial and strategic move aimed at refinancing its expensive dollar debt with local currency loans
Greenko Group has secured a 62 billion rupees ($743 million) credit line from India’s National Bank for Financing Infrastructure and Development. The company plans to use the credit to refinance its offshore debt partially. This includes refinancing two sets of dollar bonds maturing in January and July 2025. The disbursements to the company, supported by Singapore’s GIC sovereign wealth fund, will occur in tranches.
The credit line acquisition by Greenko Group is both a financial and strategic move aimed at refinancing its expensive dollar debt with local currency loans. The loan pricing, tied to the NaBFID Lending Rate, with various maturities that extend up to 23 years, could potentially reshape the company's financial landscape and project planning.
Greenko has significant funding requirements for its pumped hydro storage projects. This includes dealing with $1.25 billion of restricted group bonds due in the first half of next year and potentially refinancing nearly $1 billion of debt at Sikkim Urja. According to Sharon Chen, a credit analyst from Bloomberg Intelligence, the company may have good access to onshore funds for project-backed debt.
NaBFID, the government-backed infrastructure lender, is not just a financial institution. It has a crucial role in India's economic growth agenda, particularly in addressing long-term infrastructure financing needs. This role is underscored by its support for Greenko Group's credit line, a move that aligns with Prime Minister Narendra Modi’s economic growth agenda.
Greenko is a major player in India’s renewable energy sector, boasting a net installed capacity of 7.5 gigawatts across 15 states in India.
Greenko and NaBFID have not yet responded to Bloomberg’s emailed requests for comment, which were sent outside regular business hours.