Bond Market News

Brookfield Asset Management looks to invest at least $1bn in India’s Greenko Group. Brookfield will help in decarbonizing initiatives and the investment can be extended to $1.25bn at a $9-10bn valuation as per the ET. The investment may either be in its subsidiary Greenko Zero C or the parent, Greenko Energy Holdings (GEH). Sovereign wealth funds such as the GIC of Singapore and Abu Dhabi Investment Authority (ADIA), along with Orix Corporation are some of Greenko Energy Holdings’ existing investors. Greenko Zero C, a step-down subsidiary that is 70% owned by GEH and 30% by founders, operates in green hydrogen and energy transition initiatives. The investment into Greenko is likely to be from Brookfield’s Global Transition Fund, the world’s largest private fund dedicated to the net zero transition. Separately, ET added that Greenko’s shareholders have agreed to infuse $1bn via a rights issue to fund the company’s expansion plans. The company is currently rated Ba1 by Moody’s, who commented, “GEH’s rating reflects its diverse portfolio of operating renewable energy assets backed by long-term contracts, track record and large operating scale. However, GEH’s exposure to financially weak offtakers and large capital spending plans, which will keep its financial leverage high, offset these strengths.” The company currently has a net installed capacity of 7.5 GW across 15 States in India.

Greenko’s dollar bonds were trading slightly higher – its 4.875% 2023s were up over 0.2 points to 95.75 yielding 10.04%.

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