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    Hero Future Energies first dollar green bond sees strong demand

    Hero Future Energies first dollar green bond sees strong demand

    Hero Future Energies first dollar green bond sees strong demand
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    By CNBCTV18.com  IST (Updated)

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    Ben Fraser, the CFO of Hero Future Energies also commented on this outcome, "The market response to HFE’s first dollar bond is a testament to the company’s excellent credit story."

    Delhi-based Hero Future Energies' (HFE) green bond has received orders of more than $3 billion and it was successfully priced at a coupon rate of 4.25 percent for a 6-year maturity period. The issuance was oversubscribed more than 8.5 times.
    The renewable energy firm is a third generation entrepreneurial company and part of the Pawan Munjal family’s Hero Group, which includes Hero MotoCorp, one of the major leaders in the two-wheeler segment in India.
    Rahul Munjal, the CMD of Hero Future Energies said, "HFE’s first dollar bond offering has created a landmark by achieving the highest levels of oversubscription for any transaction out of India this year in the USD bond market. This is a very encouraging move by global investors especially in the post-pandemic phase and demonstrates the importance of ESG among the investor community. This bond offering has opened up the global debt capital markets for HFE, thereby diversifying the company’s existing sources of capital and positions HFE as a robust player in the global cleantech space.”
    Ben Fraser, the CFO of Hero Future Energies also commented on this outcome, "The market response to HFE’s first dollar bond is a testament to the company’s excellent credit story. Our debut green bond offering witnessed participation from an exceptional list of key global blue-chip investors. The bond was launched to the market at initial price guidance of 4.75 percent. Given the strong demand from global accounts, price guidance was tightened by 50 bps. Even with the largest tightening from any Indian credit this year, most investors continued to remain in our books, resulting in a final order book of over $3 billion, with the allocation of 58 percent to Asian investors, 15 percent to EMEA and 27 percent to investors in the US."
    Interestingly, HFE’s first dollar green bond comes after the firm’s success in 2016 with the issuance of first-ever climate bond by any Indian renewable company. At present, HFE has a portfolio of 1.6 GW in India, as it targets to expand its operations in foreign markets and grow its overall capacity to 5 GW by 2024.
    The renewable energy firm basically primarily in wind, grid-connected solar, rooftop sector and energy storage. Alongside traditional renewable projects of solar and wind, HFE will look to deliver futuristic renewable energy projects utilising new technologies including battery storage, floating solar and green hydrogen.
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