USD Green bond offering by Hero Future Energies was successfully oversubscribed by 8.5 times
The Group’s first USD green bond in the offshore markets
USD Green bond offering by Hero Future Energies, renewable energy venture of the Hero group was successfully oversubscribed by 8.5 times
- Total order book size for the offering was over USD 3 billion
- Green bonds were finally priced at a coupon rate of 4.25% for a 6-year issuance
- This offering found favourable demand across the globe from marquee investors resulting in 98% allocation to high-quality fund managers and insurance companies
New Delhi, March 19, 2021:
Hero Future Energies (HFE), renewable energy venture of the Hero group announced issuance of their first USD bond in global markets, through Clean Renewable Power (Mauritius), a wholly owned subsidiary of Hero Future Energies Asia. HFE’s green bond received orders of over USD 3 billion and was successfully priced at a coupon rate of 4.25% for a six-year maturity period. The issuance was oversubscribed more than 8.5 times.
Rahul Munjal, Chairman & Managing Director, Hero Future Energies said, “HFE’s first USD bond offering has created a landmark by achieving the highest levels of oversubscription for any transaction out of India this year in the USD bond market. This is a very encouraging move by global investors especially in the post pandemic phase and demonstrates the importance of ESG among the investor community. This bond offering has opened up the global debt capital markets for HFE, thereby diversifying the company’s existing sources of capital and positions HFE as a robust player in the global cleantech space.”
Ben Fraser, Chief Financial Officer, Hero Future Energies also commented on this outcome, “The market response to HFE’s first USD bond is a testament to the company’s excellent credit story. Our debut green bond offering witnessed participation from an exceptional list of key global blue-chip investors. The bond was launched to the market at an initial price guidance of 4.75%. Given the strong demand from global accounts, price guidance was tightened by 50 bps. Even with the largest tightening from any Indian credit this year, most investors continued to remain in our books, resulting in a final orderbook of over USD 3 bn, with allocation of 58% to Asian investors, 15% to EMEA and 27% to investors in the US.”
HFE’s first USD green bond comes after the company’s success in 2016 with issuance of first ever climate bond by any Indian renewable company.
NOTES TO EDITORS
HFE is a third-generation entrepreneurial company and part of the Munjal family’s Hero Group, which includes Hero MotoCorp the dominant leader in the domestic motorbike industry in India. HFE was established in 2012 as a deliberate strategic decision by the Group to enter the high growth market of power generation from clean and renewable sources of energy.
About Hero Future Energies
Established in 2012, Hero Future Energies HFE, subsidiary of Hero Group, is a leading renewable energy provider focussed on providing ‘Planet Positive Power’. HFE currently has a portfolio of [1.6GW] in India. HFE aims expand its operations in overseas markets and grow its overall capacity to [5GW] by 2024. HFE operates in primarily in wind, grid connected solar, rooftop sector and energy storage. Alongside traditional renewable projects of solar and wind, HFE will look to deliver futuristic renewable energy projects utilising new technologies including battery storage, floating solar and green hydrogen.
As the global economy continues to grow and demand cleaner power, HFE is poised to provide clean power to industries, businesses, educational institutes, non-profits, and governmental organizations at competitive rates. HFE will help reduce dependence on power generated by fossil fuels like coal, oil, and natural gas to fight back against climate change.
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