• Global Market Entry: SAEL’s debut in international capital markets opens a new liquidity pool.
• Oversubscribed Bonds: $305M issuance saw demand grow to over $1.85B, oversubscribing by more than 6x.
• Future Expansion: Proceeds will refinance debt and fund new renewable projects, targeting 5 GW capacity in two years.

SAEL group has successfully issued its first US dollar-denominated green bonds, raising $305 million in the international markets. This marks a significant milestone, providing the company access to a deeper, alternative liquidity pool beyond domestic Indian lenders.

The green bond, jointly issued by SAEL Ltd and its five wholly-owned subsidiaries (the “Restricted Group”), includes 334 MW of renewable energy assets in solar and waste-to-energy. With backing from investors like Norfund and DFC, SAEL aims to expand its renewable portfolio to 5 GW within the next two years. The funds will refinance existing debt and support capital expenditures for future projects.

The bonds, issued at a 7.80% yield with a seven-year tenor (5.3-year weighted average life), are expected to be rated BB+ by Fitch. SAEL’s CEO, Laxit Awla, highlighted the importance of this issuance, stating, “This is an excellent outcome for us, as this has established our international capital market presence. We will continue to strengthen our position in capital markets with strong execution and operational performance.“

To promote the bond issuance, SAEL conducted a global roadshow, engaging with institutional debt investors across Asia, Europe, and the US. The $305 million issue attracted significant interest, resulting in an order book exceeding $1.85 billion, reflecting an oversubscription of more than six times.

A total of 139 investors participated, with 61% of the funds raised from Asia, 20% from EMEA, and 19% from the US. Asset managers accounted for 88% of the funds, while insurance companies, pension funds, and other financial institutions made up the rest.

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Varun Gupta, SAEL’s Chief Investment Officer, commented on the market’s response: “The record order book oversubscription for SAEL’s debut issuance by more than 6x reaffirms the faith of investors in SAEL’s business model and the opportunities presented by the renewable industry.“

The green bond issuance was also supported by a second-party opinion from sustainable Fitch, rating the framework as “excellent,” further solidifying investor confidence in SAEL’s sustainable initiatives.