Appleby Mauritius advised in a structured finance deal of US$363 million 4.25 % senior secured notes due 2027 (Notes) issued by Mauritius-based Clean Renewable Power (Mauritius) Pte. Ltd (Issuer). The Issuer is a wholly owned subsidiary of Hero Future Energies Asia Pte. Limited (Parent), an independent power producer in India with a renewable energy portfolio of more than 2 gigawatts of capacity, including assets under construction. The Notes were listed on the Singapore Exchange Securities Trading Limited.
The proceeds from the Notes will principally be used to subscribe to Indian rupee-denominated external commercial borrowing (INR ECB) bonds to be issued by a newly formed restricted group of companies consisting of eight subsidiaries that are indirectly wholly-owned by Hero Future Energies Private Limited (HFEPL). HFEPL is one of India's leading Independent Power Producer (IPP) with operating plants in wind, grid-connected solar and rooftop solar. The eight entities (referred to as HFE RG1) will use the proceeds of the INR ECB bonds primarily to refinance existing indebtedness, and to repay or extend inter-company loans to HFEPL along with general corporate purposes.
Fitch Ratings has assigned the Issuer's proposed offering an expected rating of 'BB-(EXP)' and Moody's Investors Service has assigned a (P)Ba2 rating to such offering. Fitch considers that the rating on the Notes reflects the credit quality of HFE RG1 across three states in India, comprising of 273 MW solar assets (54% of total capacity) and 231.5 MW of wind assets (46%). The rating from Fitch is supported by not only the substantial and growing renewable energy industry in India but also by the fact that 46% of the total capacity of HFE RG1 is contracted with a sovereign-backed entity, Solar Energy Corporation of India (SECI), which makes timely payments and helps offset the long payment cycle of HFE RG1's other customers, state distribution companies. Fitch considers the technologies deployed in the HFE RG1 projects as proven.
HSBC Bank USA, National Association acted as Trustee, Common Collateral Agent, Notes Collateral Agent and Paying Agent, Transfer Agent and Registrar.
The Appleby team comprises Group Managing Partner Malcolm Moller, Counsel Melissa Virahsawmy and Associate Karishma Beegoo.