Continuum energy to raise $650 m via bonds
Continuum Green Energy, a renewable energy generator, plans to raise $650 million in bonds to refinance existing debt, with Deutsche Bank, HSBC, JPMorgan, and Standard Chartered Bank as arrangers.
, a generator, is seeking to raise about $650 million in for seven years to its existing debt, said people with knowledge of the matter. The company is likely to appoint , , , and as arrangers.The fundraise is likely to refinance $561 million in bonds raised by its subsidiary, Levanter Pte Ltd, which were raised at 4.5% and due in February 2027. However, the all-in cost of the bond is almost double the 4.5%,prompting the company to refinance the earlier tranche, a person cited above said.
The company had done a non-deal roadshow in Singapore in mid-April to gauge investor interest, one of the persons cited above said.
HSBC, Standard Chartered Bank and JP Morgan declined to comment, while Continuum Green Energy and Deutsche Bank did not respond to ET's request for comment.
The bond refinance is planned ahead of Continuum Green Energy (India) Ltd's proposed ₹4,000-crore .
The renewable energy company, founded by IIM Ahmedabad classmates Arvind Bansal and , has signed a term sheet with and UK-based to raise $150 million, as reported by ET on May 22. The company, with a 1.3 GW operational portfolio, is in talks with as lead arrangers for its IPO.
The company plans to refinance the $561 million Levanter subsidiary bonds either by issuing another public issue of dollar bonds or it would tap the local banks with rupee-denominated bonds, one of the persons cited above said. The bonds have a call option at the end of March 2025.
Continuum Energy Pte Ltd (CEPL) raised $230 million bonds on May 20 to raise its stake in its holding company Continuum Green Energy (CGEL). Earlier, , eld 83%, while CEPL held 17%. CEPL used the proceeds to buy shares from Morgan Stanley.
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