Oct. 9 (Bloomberg) — EIG Global Energy Partners LLC will
invest $125 million in India’s Greenko Group Plc to help develop
wind and hydropower projects in the country.
The funds from the $16 billion Washington-based investment
firm will be used to refinance a $70 million loan from Standard
Chartered Plc due in January, according to an e-mailed statement
from Hyderabad-based Greenko today.
The investment, along with $550 million raised in a July
bond sale, will allow Greenko to reduce borrowing costs as it
targets reaching 1,000 megawatts of installed clean-energy
capacity in India next year, according to the statement. Greenko
had 661 megawatts in operation at the end of March, according to
its latest annual report.
EIG’s investment will be made through a six-year instrument
paying an annual cash coupon of 5 percent, according to the
statement. Upon maturity, EIG will have the option to receive a
6 percent coupon payment or convert to shares at 240 pence a
share.
Greenko fell 3 percent to 163.50 pence yesterday on
London’s Alternative Investment Market.
To contact the reporter on this story:
Natalie Obiko Pearson in New Delhi at
npearson7@bloomberg.net
To contact the editors responsible for this story:
Reed Landberg at
landberg@bloomberg.net
Abhay Singh, Indranil Ghosh