Wind energy company Mytrah Energy Ltd on Thursday said it has raised $60 million from Merrill Lynch International and Aion Direct Singapore Pte Ltd to expand capacity and refinance some debt.
The company raised the money by selling five-year non-convertible debentures (NCDs) carrying a coupon of 12% per annum.
A recent fund raising of $70 million, revenue from its existing 543 MW portfolio and the latest $60 million will help it cross 1,000 MW generating capacity, the company said.
It will use some of the proceeds to refinance part of existing mezzanine financing of Rs.110 crore and the rest to develop new wind power projects.
Mezzanine financing is debt capital that gives the lender the rights to convert to equity in the company if the loan is not repaid in time.
“In four years, thanks to the support from our enthusiastic partners and an entrepreneurial team, our business has grown from an idea to 543 MW of operating capacity, with a future project pipeline of 3,500 MW,” said Ravi Kailas, chairman and chief executive officer.
Listed on the aliternative investment market (AIM) of London Stock Exchange, Mytrah is one of the largest wind power producers in India with farms in Andhra Pradesh, Tamil Nadu, Karnataka, Maharashtra, Gujarat and Rajasthan.
Until February, 1512.80 MW of wind power is connected to the electricity grid, according to official data. India aims to add 175,000 MW of renewable power capacity by 2022, of which wind energy is supposed to account for 60,000 MW.