Waste-to-energy major SAEL Group issues $305 million green bond in international markets

Waste to energy major and renewable energy player SAEL Group has completed the US dollar-denominated bond issuance in the international markets. This $305 million green bond issue marks the company’s first foray into international capital markets. With this, SAEL now has access to a substantial alternative liquidity pool, complementing the funds available through domestic Indian lenders.

The $305 million green bond was issued jointly by SAEL Ltd and five wholly-owned subsidiaries.

SAEL Group has already been supported by investors like Norfund and DFC helping it to become India’s largest operator of waste-to-energy assets. The company uses stubble, the leftover waste from harvested crops, to produce energy. It also operates in the solar energy, waste-to-energy, and module manufacturing sectors, with a renewable energy generation capacity exceeding 2.7 gigawatts.

Including its solar capacity, SAEL aims to expand its portfolio to 5 GW within the next two years. The bond proceeds will be used to refinance existing debt within its companies and to fund capital expenditures for future renewable projects.

As per SAEL, the bonds were issued with a yield of 7.80% for a tenor of seven years (with a weighted average life of 5.3 years). These are also expected to be rated BB+ by Fitch.

SAEL CEO Laxit Awla said that this is an excellent outcome for the company, as it establishes its presence in the international capital markets. SAEL looks to continue to strengthen its position with strong execution and operational performance.

For this strategic fundraising effort, SAEL conducted a global roadshow, meeting with institutional debt investors across Asia, Europe, and the Despite a 32.5 basis points reduction in pricing from initial guidance, the order books grew to over $1.85 billion, indicating an oversubscription of more than six times.

“The record orderbook oversubscription for SAEL’s debut issuance by more than 6x reaffirms the faith of investors in SAEL’s business model and the opportunities presented by renewable industry,” said Varun Gupta, chief investment officer of SAEL.