Mytrah to raise ~26bn in green bonds in 2 yrs

Piramal Capital-backed Mytrah Energy plans to raise around ~130 billion, including ~26 billion in green bonds, only in the domestic market over the next two years, the company’s co-founder Vikram Kailas said, claiming that fundraising in India has become difficult.

In an interview with BusinessStandard,

Kailas, Mytrah’s vice-chairman and managing director, said with around 16 public sector banks of 21 in Prompt Corrective Action (PCA) ambit of the Reserve Bank of India, there were restrictions on bank lending. Eleven public sector banks have already been notified under PCA, while about five are on way.

Kailas said ~2.80 a unit (kilowatt an hour) was the sustainable tariff for renewable energy and that his firm was comfortable with the tariffs for its current projects both in wind and solar segments.

Mytrah has a 3-gigawatt (GW) portfolio of wind and solar assets spread across nine states, and it aims to add 0.7-1 GW every year. It has raised debt in the past from Goldman Sachs, Dutch pension fund APG, banks and other financial institutions. The firm is, however, not looking at the listing option in India. “We will continue to be privately held,” said Kailas. Hyderabad-based Mytrah, which is among the largest Indian renewable power producers, is yet to chart out details of green bond offering. Kailas said yields had gone up in the domestic market and, hence, fundraising was becoming tight, especially when banks were stuck with bad loans. Green bonds have become one of the most prevalent mediums in the debt capital market as an alternative to traditional bank financing, said a Yes Bank report.

Mytrah’s Vikram Kailas says fundraising is becoming tight, especially when banks are stuck with bad loans