Merrill Lynch International, Aion invest $60 mn in Mytrah Energy

Merrill Lynch International and Aion Direct Singapore Pvt Ltd have invested $60 million (Rs 350 crore) in Mytrah Energy Limited, the India-based renewable energy focused independent power producer, through non-convertible debenture.

Together with the cash flow from its existing 543 Mw operating portfolio and the recently concluded $70 million financing, this new capital provides all of the equity required to take Mytrah Energy’s generating capacity beyond 1000 Mw, the company said in a statement.

The new capital is in addition to the existing India-listed non-convertible debenture (NCD) issued by Mytrah Energy (India) Ltd. and $4 million loan to Mytrah Energy Ltd.

The NCD is a long-term 5-year instrument with a cash coupon of 12 per cent. The new capital represents the exercise of $28 million “greenshoe” option, plus a $32 million extension. The proceeds from this issue will be used primarily to refinance part of existing mezzanine facilities of Rs 110 crore and the balance for development of new wind power projects.

As part of the $32 million extension to the NCD, the company has issued additional warrants giving the NCD investors the option to purchase a total of 2,827,350 shares in Mytrah Energy Ltd. at a strike price of $1.2 per ordinary share. These warrants represent 1.5 per cent of the company’s issued share capital post exercise, and can be exercised at any time during the five year lifetime of the NCD. This brings the total warrants in issue under this structure to 6.5 per cent of the company’s issued share capital post exercise.

Mytrah Energy (India) Limited (MEIL) is the wholly owned subsidiary of London-based Mytrah Energy Limited (MEL). The company has an operating portfolio of over 542 Mw across six states in the country – Andhra Pradesh, Tamil Nadu Karnataka, Maharashtra, Gujarat and Rajasthan.