- Date written
- January, 2018
- Contact for guarantco
- Marjolein van Kampen
- Communications Director
- +44 (0)738 8857097
- marjolein.van-kampen@guarantco.com
- Contact for PIDG
- Cecille Sorhus
- Head of Communications
- +44 (0)7917 302724
- cecille.sorhus@pidg.org
- Share
Sindicatum Renewable Energy Company Pte Ltd (“Sindicatum Renewables”), a Singapore-based developer, owner and operator of renewable energy projects has issued an Indian Rupee (“INR”) international green bond (the “Green Bond”), totaling INR 2.5 billion (approximately USD 40 million).
Sindicatum Renewable Energy Company Pte Ltd (“Sindicatum Renewables”), a Singapore-based developer, owner and operator of renewable energy projects has issued an Indian Rupee (“INR”) international green bond (the “Green Bond”), totaling INR 2.5 billion (approximately USD 40 million).
GuarantCo Ltd, a Private Infrastructure Development Group (PIDG) company, provided an unconditional and irrevocable guarantee, which covers 100% of the principal and interest of the Green Bond.
The Green Bond proceeds will be used to acquire renewable energy projects including several solar projects in India, and refinance existing USD debt into INR debt.
The Green Bond is the first international green bond guaranteed by GuarantCo in Asia. It is also the first in local currency, ensuring that Sindicatum Renewables is not exposed to currency risk.
Moody’s rated the Green Bond A1 and Fitch AA -. The strength of GuarantCo’s guarantee was responsible for the strong rating, which also made it feasible for institutional investors to subscribe to the Green Bond.
Lasitha Perera, GuarantCo’s CEO, said
“GuarantCo is delighted to have partnered with Sindicatum Renewables on this pioneering transaction, our first green bond and the first to be closed by our recently established Singapore office. GuarantCo is committed to mobilising capital markets to support the growth of infrastructure developers that operate in lower income countries. In line with this mission, it is our hope that the innovative synthetic local currency bond structure, developed for Sindicatum Renewables, will be replicated by other developers of critical infrastructure in lower income countries to access the international capital markets whilst mitigating currency risk.”
Assaad W. Razzouk, CEO of Sindicatum Renewables, said
“We are delighted to announce the successful closing of our Indian Rupee-denominated international green bond. With a 7-year maturity, this bond will allow us to accelerate the pace of our investments in India’s clean energy infrastructure while protecting us from foreign exchange risk. We hope that our green bond will increase investors’ limited support todate of the green bond market and help accelerate the mobilization of sustainable finance for South and South-East Asia, a region at the front lines of suffering from climate change.”