StanChart: StanChart funds Rs 700 crore debt for ReNew arm

Mumbai: Standard Chartered Bank has provided a ₹700-crore debt facility to Renserv Global, a special purpose vehicle of green-energy producer ReNew, people with knowledge of the matter told ET.

The debt facility is in the form of secured listed non-convertible debentures (NCD), with a 39-month tenure and a coupon of 9.9%.

The parent company, ReNew, has provided a corporate guarantee for the full amount raised by the SPV. The corporate guarantee is unconditional, irrevocable, and legally enforceable, according to a rating report by Care Ratings.

The rating agency has assigned ‘Care A+ CE’ rating to the ₹700 crore NCD. However, the rating of the SPV would have fallen to ‘Care BBB+’ with the corporate guarantee, Care Ratings said in a report dated December 11.

It also stated that ReNew’s guarantee covers all dues payable under the said facility and shall be valid till the final settlement date.

The proceeds will be used for capital expenditure related to the 230 MW wind power project located in Kutch, in Gujarat and upstream some funds to the parent for the execution of the same project.

Standard Chartered Bank declined to comment. ReNew did not respond to ET’s request for comments.ReNew is the flagship company of the group and a subsidiary of ReNew Energy Global (REG), which is listed on the Nasdaq. The group is a leading renewable energy developer in India, having a cumulative capacity of 13.7 GW as of October 25, 2023.

Canada Pension Plan Investment Board (CPPIB) has a 54% stake in the Nasdaq-listed REG, with two representatives having board seats.

ReNew has provided ₹159 crore unsecured loan to Renserv Global (RGPL), according to the bond memorandum.

RGPL is engaged in providing operations and maintenance services (O&M services) to the renewable power projects being operated by ReNew group.

RGPL performs the operation and maintenance (O&M) activity for 6.4 GW capacity as of December 1, 2023.

“The management has also articulated that going forward, RGPL would be the primary O&M service provider for the capacity in the pipeline (5+ GW),” said the report by Care Ratings.

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