News & Analysis

India's Mytrah Energy borrowing $60m

Merrill Lynch and Aion Capital Partners are providing the convertible debt which adds to the $70 million raised by the company last year.

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Indian independent power producer (IPP) Mytrah Energy has raised an additional $60 million through a non-convertible debenture to add to the $70 million it raised last November, the company said.

The new capital is coming from Merrill Lynch International and a subsidiary of Aion Capital Partners, the $825 million private equity fund backed by Apollo Global Management and ICICI. The November funds were raised from Apollo Global Management and Bank of America Merrill Lynch, PDI sister title low carbon energy investor reported. 

Most of the new money is coming from a roughly $56 million addition to the $70 million non-convertible debenture raised last November, representing the exercising of a $28 million ‘greenshoe’ option plus a $32 million extension. The 5-year debenture is paying a 12 percent coupon and offers investors the option of purchasing over 11 million shares in the firm at a strike price of £0.77 ($1.15; €1.07). The remaining $4 million is being provided as a loan to Mytrah Energy.

Mytrah says the majority of the funds will be used to refinance some $18 million in existing mezzanine facilities. It added the balance raised, combined with the cashflows being generated by its 543MW portfolio, will give it enough firepower to take the company’s generating capacity to over 1,000MW. The Indian IPP invests in wind power across six states – Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu.

“In four years, thanks to the support from our enthusiastic partners and an entrepreneurial team, our business has grown from an idea to 543MW of operating capacity, with a future project pipeline of 3,500MW. This new capital provides the equity we need to take our capacity beyond 1,000MW,” said Mytrah chairman and chief executive Ravi Kallas.

A subsidiary of London-headquartered Mytrah Group, Mytrah Energy listed in 2010, raising $80 million from the likes of Blackrock, Henderson and the Capital Group. The company hopes to own some 1,500MW of wind power by 2016.