Solar & Waste To Energy Specialist Sukhbir Agro Completes Rs 1,325 Crore Bond Issue

Renewable energy company Sukhbir Agro Enterprises Limuted (SAEL) has announced that it has secured Rs 1,325 crore by the way of issuance of bonds. SAEL has received the funds as long term financing which is denominated in rupees. The AA rated bonds are slated to mature a decade after in 2033.

SAEL said in its official statement, “SAEL, India’s largest waste-to-energy producer, has successfully culminated issuance of AA-rated bonds to the tune of Rs 1,325 crore. (approx $161 million).”

SAEL has issued long-term, secured, unlisted, rated, redeemable, Non-Convertible Debt Securities and the funds received will provide fillip to the renewable energy efforts of the company.

These AA rated bonds have been subscribed by a consortium of four leading institutions. The subscribers are India Infradebt Ltd, Aseem Infrastructure Finance Ltd, TATA Cleantech Capital Ltd, and Kotak Infrastructure Debt Fund Ltd.

Barclays was the sole arranger and also structuring agent for the issuance of the bonds for SAEL.

Laxit Awla, CEO, SAEL, stated, “We contribute to combating one of our nation’s greatest health issues by collecting the crop stubble to be used as fuel in our waste-to-energy plants. At the same time, we create local employment and generate additional income for farmers and local entrepreneurs.”

SAEL is a Delhi based renewable firm that delves in solar and agriculture waste-to-energy projects. The company consumes crop residues as fuel in Punjab, Haryana, Uttar Pradesh and Rajasthan to convert it into power through its business model.

The company wants to increase its capacity to 3.5 GW in the coming four years through addition of 100 MW of biomass and 600 MW of solar capacity every year.

Recently, the Asian Development Bank (ADB) and SAEL inked loan agreements that would lead to a support of more than $91.14 million that would help the firm to increase the generation of biomass energy employing agricultural residue and helping India diversify its energy mix.

Last January, the new Norwegian Climate Investment Fund, managed by Norfund, also announced that it is investing about Rs 500 crore in equity in SAEL that will contribute to avoiding more than 2.8 million tons of CO2 emissions and improving air quality by reducing stubble burning.