Energy Efficiency Services Limited (EESL), a state-owned firm under the aegis of the power ministry, has raised Rs 500 crore from the market through its maiden bonds issue to fund energy efficiency projects in India.
"Domestic bonds worth Rs 500 crore were issued to investors on private placement basis at a coupon rate of 8.07 per cent per annum. These bonds have been rated AA by ICRA and CARE. The maturity of the bonds range from 3.5 to 7 years," the power ministry said in a statement.
It added the access to Indian bond markets will be a key milestone for EESL to channelize more investments in the energy efficiency market. The company's capital expenditure requirement stands at Rs 3,500 crore for the current financial year. The corporate bonds issued will be the first of many tranches.EESL is also planning to introduce Green Masala Bonds worth around Rs700 crore in November this year. The firm has also tied-up funding from multi-lateral agencies including KFW, AFD and ADB for funding its energy efficient projects.
"Our requirement from the markets is quite high. However, we are confident of a great response from investors looking at our unique model," EESL Managing Director Saurabh Kumar said.
EESL is a joint venture of state-run firms including NTPC Limited, Power Grid Corporation (PGCIL), Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).
The firm is working on what it claims was the world's largest energy efficiency portfolio of $13 billion over four years. It aims to capture the energy efficiency (EE) and demand side management (DSM) market in India valued at Rs 1.5 Lakh crore.
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