SAEL Group Makes Debut in International Bond Market with $305 Million Green Bond

SAEL Group has successfully issued its first US dollar-denominated bonds in the international markets, marking a significant milestone in the company’s expansion into global capital markets. The $305 million (approximately INR 25,315 crores) green bond issuance is the group’s debut in the international capital arena and aims to provide access to a broader liquidity pool, complementing funds from domestic Indian lenders.

The bond, issued jointly by SAEL Limited and its five wholly-owned subsidiaries—collectively known as the “Restricted Group”—is notable for being the first renewable energy issuance from India to include waste-to-energy assets. The Restricted Group’s portfolio encompasses 334 MW of renewable energy projects, including solar and waste-to-energy.

The bonds were structured as a project-finance style security, featuring 100% share pledges and charges over all assets, and incorporating a cashflow waterfall mechanism. They were issued with a yield of 7.80% for a seven-year tenor, with a weighted average life of approximately 5.3 years, and are anticipated to receive a BB+ rating from Fitch. This issuance represents a key step in diversifying SAEL Group’s borrowing profile.

Laxit Awla, Chief Executive Officer of SAEL, commented, “This successful issuance establishes our presence in the international capital markets. We aim to continue strengthening our position with robust execution and operational performance.”

The strategic fund-raising effort included a global roadshow, during which SAEL met with institutional debt investors across Asia, Europe, and the US. The $305 million issue saw strong demand from global investors, with order books exceeding $1.85 billion, indicating an oversubscription of more than six times. The final issuance involved 139 investors, with 61% of the funds raised from Asia, 20% from EMEA, and 19% from the US. The deal attracted high-quality interest, with 88% of the funds coming from asset managers, 7% from insurance companies and pension funds, and 5% from other investors, including financial institutions and banks.

The green bond issuance received a second-party opinion from Sustainable Fitch, which rated the framework as “excellent,” its highest category. Proceeds from the bond are expected to be used for refinancing existing debt within the Restricted Group and funding capital expenditures for future renewable projects.