Milbank advised Deutsche Bank, Barclays, Citigroup, Credit Suisse, JPMorgan, Société Générale and Standard Chartered Bank as lead managers in connection with a US$707 million 144A/Reg S green project bond issued by JSW Hydro Energy Limited (“JSW Hydro”). The company’s debut dollar-denominated green project bond issuance was listed on the Singapore Exchange Securities Trading Limited and closed on May 18, 2021. This was the first bond with project-style covenants issued from India’s hydro sector.
JSW Hydro, a wholly-owned subsidiary of JSW Energy Limited, is the largest Indian private sector power generation company, and the owner and operator of two hydroelectric power projects in India’s State of Himachal Pradesh: the 1000MW Karcham Wangtoo project and the 300MW Baspa II project.
Project bonds are emerging as an important tool for borrowers in the infrastructure sector and Milbank has advised on a number of power sector project bond issuances throughout Asia, including for Genting Berhad in Malaysia and for Star Energy in Indonesia. The transaction also highlights the growing trend in green bond issuances, a product with which Milbank has significant experience. Most recently, Milbank has advised on green bond issuances for Delhi International Airport Limited, Star Energy Geothermal, Manila Water Company, Inc. and notably for AC Energy Inc. on the first US-backed climate bonds initiative issuance in Southeast Asia.
The Hong Kong based Milbank team was led by Global Capital Markets Group partner James Grandolfo with associates York Wu and Abir Varma.
“We are delighted to have supported the parties to this important transaction. In addition to being the first project bond from India’s hydro sector, the bonds were issued under JSW Hydro’s green bond framework, which will allow them to finance and refinance expenditures related to run-of-the-river hydro projects and accelerate JSW Hydro’s portfolio expansion in the direction of renewable energy,” said Mr. Grandolfo.
