JSW Infra Raises $400M Through SLB Issuance
The proceeds of this issue will be used to repay the existing debt of the company and its subsidiaries
JSW Infrastructure Ltd. reported successfully raising $400 million 144A/Reg S Senior Secured Sustainability-Linked Bond for a 7-year term at 4.950%.
The proceeds from this issuance will be used to repay existing debt of the company and its subsidiaries and as permitted by RBI under ECB guidelines.
“This fundraising marked the company’s first bond issue as well as the first sustainability-linked bond (SLB) by an Indian port company,” the company said in a statement. This sustainability bond issuance is guided by JSW Infrastructure’s sustainability bond framework, which is aligned with the International Capital Markets Association (ICMA), he said. The company said it had obtained a second-party opinion from DNV, describing the sustainability performance target set as “ambitious” and “beyond what is considered ‘business as usual'”.
Arun Maheshwari, JMD and CEO of JSW Infrastructure, said: “It [the bond issue] will help us realign our capital structure and increase the efficiency of our financing in the years to come. The success of this issue validates our stable business model with our renewed focus on business strategy linked to sustainable development. Lalit Singhvi, Executive Director and Chief Financial Officer, said: “This bond issue will allow us to further diversify, strengthen our funding sources and optimize our capital structure.
The deal received a strong response from investors around the world resulting in the backlog peaking at $1.35 billion with a final backlog exceeding $1.13 billion with a 3x oversubscription, the company said.