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Portfolio/Sindicatum Renewable Energy Company II

GuarantCo signed a deal with Sindicatum Renewable Energy Company Pte Ltd, a Singapore-based developer, owner and operator of renewable energy projects, for USD 60 million Green Bonds, rated A1 by Moody’s (Indian Rupee and Philippine Peso tranche) and AA- by Fitch (Indian Rupee tranche).

Sindicatum II
India
Phillipines Flag

Overview

Date of transaction

August 2018

Countries

India, Philippines

Beneficiaries and financing partners

Bond investors

GuarantCo guarantee

USD 60 million (INR and PhP equivalent)

Sector

Energy

Total transaction amount

USD 60 million (INR and PhP equivalent)

GuarantCo Benefits

This is the second successful deal with Sindicatum Renewables Energy Company (“Sindicatum Renewables”) following the USD 40m first international corporate Indian Rupee Green Bond in Asia which was closed in January 2018. 

The Green Bonds are synthetic local currency issues covering India Rupee (“INR”) and Philippine Peso (“PhP”) but issued and settled in USD.  GuarantCo’s guarantees will be denominated in INR and PhP making it a local currency transaction, as are the majority of all GuarantCo’s transactions.

The proceeds from the Green Bonds will be used by Sindicatum Renewables to refinance a mezzanine debt facility from FMO, the Dutch development bank, and Proparco, the French Development Finance Institution, and to fund construction and acquisition of solar and wind power projects in India and the Philippines.

GuarantCo hopes that this issuance will act as a catalyst to encourage potential corporate issuers looking to secure long-term funding for infrastructure related initiatives to consider the same approach. 

Development Benefits

It is expected that over 140,000 people will benefit from improved service levels through nearly a billion kWh net electricity exports by the greenfield projects in the Philippines.  In addition, 2,700 local people will benefit from employment during the construction in both India and the Philippines.

The transaction will be the first 10-year local currency Green Bond transaction from South East Asia and most importantly will support green field projects in the Philippines. This will have a strong demonstration effect to developers as well as investors in the region. 

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