India based Greenko secured a INR 55bn ($700mn) loan from state-owned Power Finance Corporation (PFC) to build a river energy storage project in the southern state of Andhra Pradesh. The debt is in the form of a 20-year loan at an annual interest rate of 11%; the company has to start repaying the debt from the second year after the commissioning of project. The storage project has a capacity of 1.2 GW and it costs INR 76bn ($970mn). Out of the total costs, PFC is funding INR 55bn ($700mn) through its loan and the remaining INR 21bn ($270mn) will be raised from equity by Greenko. Around the storage project, multiple solar and wind power projects are being built and could become potential buyers of storage capacity from Greenko. The river energy storage project will serve the power distribution companies, spot markets and commercial customers. Greenko is currently building 8 GW of renewable energy capacity. It is majority owned by Singapore’s sovereign wealth fund GIC.

Greenko’s 4.875% 2023 is trading at 97.63, down 0.09 points at a yield of 7.33%.

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