Atria Power in discussion with i-banks for dollar bond issue

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bengaluru-based renewable energy firm Atria Power is in talks with investment bankers to explore the possibility of a dollar bond issue, sources aware of the matter told FE. Bankers said the company is in early stages of talks to consider a dollar bond issue, which on execution, will be the debut bond offering by the company in the overseas market. “The firm could look at a possible $300 million issue with a tenure of five years. The issue is likely to be a high-yield one,” said a banker. Atria Power provides power solutions across mini-hydro power, wind, solar and hybrid projects. As part of its future plans, the firm plans to develop 1000 MW of projects with an investment of Rs 3,000 crore.

In the mini-hydro segment, the firm has projects in Shimsha, Shivanasamudram, and Krishna Raja Sagara. In the wind power segment, the company has projects in Madhya Pradesh and Andhra Pradesh. Microsoft Corp recently announced the completion of its first renewable energy deal in Karnataka, and the agreement will see Microsoft purchase 3 MW of solar-powered electricity from Atria Power to help power its new office building in Bangalore.  “This will meet 80% of the projected electricity needs at the new facility,” Microsoft said in a release.

The year 2018 has not seen many high-yield issuances from India. Tata Steel’s ABJA Investment Co had raised $1.3 billion in January through a high-yield issuance. Recently, some of the firms that were considering an issue have either delayed their issues or are considering a shift to the syndicated loan market, according to sources. “This is because the market has remained non-conducive over the last few weeks. Investors’ demand for yield seems to be higher than the issuers’ expectations,” a banker said.

FE had earlier reported that Bangalore International Airport, the operator of Kempegowda International Airport, Bengaluru, is believed to be in talks with investment bankers to explore the possibilities of tapping the dollar bond market. The firm is likely to look at an issue size of $300-500 million, a banker had said. So far in calendar 2018, Indian firms and banks have raised over $4 billion through bond issuances in the overseas market.

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