Continuum Wind Energy To Raise $560 M

CIOReviewIndia Team | Wednesday, 03 February 2021, 04:35 IST

  • No Image

Continuum Wind Energy, which is controlled by Morgan Stanley, is in the international markets with a USD 560-million dollar-denominated green bond issue, as two-merchant banking sources suggest.

Continuum is a city-based green energy player, which started its operation in June 2009, has expanded its expertize in wind and solar assets, and presently has a column of about 2gw, from which 757.4 mw are being operated in the states of Gujarat, Maharashtra, Madhya Pradesh, and Tamil Nadu. And 428 mw is in the construction stage.

Continuum is in the dollar bond market with a 6-year green bond issue worth of USD 560 million, and the weighted average life of the bond is 5.1 years, as reported by sources.

An anchor investor, IFC Washington to this issue for which the initial price guidance was 4.875 percent in the US treasury.

While the issue is still open with demands order book crossing USD 3.2 billion, the second merchant banking source says that they have tightened the final price guidance to 4.5 percent adding the issue will be closed by the end of the US market hours today.

The lead banker for the transaction is Deutsche Bank with other merchant bankers include StanChart, HSBC, JP Morgan and Emirates.

The domestic issuers from January have raised USD billion in forex debt with the Exim Bank opening the market with a USD 1 billion in January’s first week, which soon followed by SBI with a USD 600 million issue, Adani Ports (USD 500 million), and PFC (USD 350 million).

The companies are cultivating the forex debt market given the record low-interest rates for paying back the higher priced loans.

The bond rated is BB+ by Fitch and Ba2 by Moody’s.

Continuum is now a majority-owned by North Haven Infrastructure Partners, a USD 4-billion global infrastructure investment fund managed by Morgan Stanley Infrastructure Partners that is focused on the long-term investment of worldwide infra assets.

The firm has support from many leading banks and financing institutions like the State Bank, the IFC, Power Finance Corporation, Indian Renewable Energy Development Agency, India Infrastructure Finance Company, PTC Financial Service, India Infradebt, Tata Capital, L&T Infrastructure Finance and L&T Fincorp, which are listed on the firm’s website.

During these years, Continuum has gained position as one of the largest suppliers of renewable power for corporates in the commercial and industrial segments and its present customer list includes 100 from different industries.

Continuum has 386.2 mw of wind projects in Gujarat, Maharashtra and Madhya Pradesh in operation and is constructing a 400 mw wind project in Gujarat under the agreement with Solar Energy Corporation.

Continuum operates 371.2 mw of wind and solar power projects in Tamil Nadu and Gujarat, where it supplies 100+ crore units to the industrial customers.

🍪 Do you like cookies?

We use cookies to ensure you get the best experience on our website. Read more...