Continuum Energy Raises $350 Million For C&I Renewable Market In India

Singapore-based Continuum Green Energy Ltd, has announced that it has raised $350 million in debt by issuing senior secured floating rate notes to two international institutional investors. The notes have a tenure of 3.5 years and the proceeds will be partly used to refinance debt and finance project construction. The floating rate is linked to the Secured Overnight Financing Rate. The firm has also stated that it has the option to issue a further $50 million on fulfilling certain obligations. Previously, Continuum also saw participation from IFC, the World bank’s private sector financing arm, for a green bond issue out of Singapore.

Currently, almost all the projects of the firm are concentrated in Gujarat, Madhya Pradesh and Tamil Nadu respectively.

The funding announcement comes shortly after GE Energy Financial Services (GE EFS) bought a 49% stake in Continuum Green Energy’s 148.5 MW Morjar onshore wind project in Gujarat. Continuum Green Energy is majority-owned by a global infrastructure fund managed by Morgan Stanley Infrastructure.

The fund raise will be seen as yet another vindication of the high potential that is finally being translated into reality in the corporate and industrial segment for renewable energy, with positive policy interventions that will create both pressure and demand for higher renewable energy. It also marks out the Indian market as a market able to raise funding despite the existing volatility in global markets, with the right kind of projects.