SAEL Group’s Green Bond Debut Surges With $305 Million Issuance And Record International Demand

SAEL Group has successfully issued its inaugural US dollar-denominated green bonds, marking a significant step in its efforts to access global capital markets. This landmark transaction provides the Company with an additional liquidity source, complementing funds available from domestic Indian lenders.

The $305 million green bond issuance was led by SAEL Limited and five of its wholly owned subsidiaries, collectively known as the “Restricted Group.” This group manages 334 MW of renewable energy assets, including solar and waste-to-energy projects. Notably, this is India’s first renewable energy bond to feature waste-to-energy assets.

The bond was issued with a 7.80% yield and a seven-year tenor, with a weighted average life of approximately 5.3 years. It is anticipated to receive a BB+ rating from Fitch. The issuance, structured as project-finance style security financing, includes 100% share pledges and asset charges, accompanied by a cash flow waterfall mechanism. This transaction represents a major step in SAEL’s strategy to diversify its borrowing profile.

Laxit Awla, Chief Executive Officer of SAEL, commented, “This is an excellent outcome for us, establishing our presence in the international capital markets. We will continue to strengthen our market position through robust execution and operational performance.”

To support this strategic fundraising, SAEL conducted a global roadshow, engaging with institutional debt investors across Asia, Europe, and the US. The $305 million issue saw overwhelming demand, with the final order book oversubscribed by more than six times, reaching over $1.85 billion. The issuance attracted 139 investors, with 61% of the funds coming from Asia, 20% from EMEA, and 19% from the US. High-quality demand was evident, with 88% of the funds raised from asset managers, 7% from insurance companies and pension funds, and the remaining 5% from other financial institutions.

The green bond, which received an “excellent” rating from Sustainable Fitch, will be used to refinance existing debt within the Restricted Group and fund capital expenditures for future renewable projects. Varun Gupta, Chief Investment Officer of SAEL, remarked, “The record oversubscription for SAEL’s debut issuance underscores investor confidence in our business model and the growing opportunities in the renewable industry. Supported by key partners such as Norfund and DFC, SAEL is the largest operator of waste-to-energy assets in India and plans to expand its portfolio to 5 GW within the next two years.”