SAEL, a renewable energy firm, plans to sell dollar bonds worth up to $500 million.
The offering also comes amid India’s push to boost the renewable energy sector.
SAEL Ltd., an Indian renewable energy firm, is planning an initial dollar bond sale worth up to $500 million, according to people familiar with the matter, joining other borrowers to fuel Asia’s hottest high-yield market in five years.
The company, which develops sustainable energy projects such as solar plant construction, intends to launch the initial offering by the end of June, with the proceeds going toward business expansion and debt refinancing, according to people familiar. The company is in talks with a group of foreign banks to arrange the bond sale, with a tenor of five to seven years, according to the people.
SAEL’s upcoming note sale is expected to contribute to a recent issuance boom in Asia and elsewhere. Last week, issuers around the world rushed to enter the dollar debt market, citing lower borrowing costs and risk-on sentiment. Indian corporations, in particular, have led the Asian junk dollar bond market to its first revival in five years, thanks to strong investor demand.
When Bloomberg News reached out to SAEL, a spokesperson declined to comment.
The offering also coincides with India’s efforts to boost the renewable energy sector. India plans to nearly triple its clean energy capacity by the end of the decade in order to decarbonize its fossil fuel-driven economy.
