EESL issues domestic bonds worth Rs 500 crore

Energy Efficiency Services (EESL) issued its maiden bonds worth Rs 500 crore in the domestic market to investors on private placement basis at a coupon rate of 8.07 per cent a year. The proceeds would be used to fund energy efficiency projects in India, said the company in the media statement.

These bonds have been rated AA by ICRA and CARE. The maturity of the bonds range from 3.5 to 7 years on STRPP (Separately Transferable Redeemable Principal Parts) basis. The bonds are proposed to be listed in Wholesale Debt Market segment of the BSE. The issuance has been fully subscribed.

 

For financial year (FY) 2016-17, the capital expenditure requirement of EESL is Rs 3500 crore. "EESL is also planning to introduce Green Masala Bonds worth $100mn (around Rs 700 crore) in November. The company has also tied up with multi-lateral agencies like KfW, AFD and ADB (Asian Development Bank) for funding its energy efficient projects," said the company in a statement.

EESL is a joint venture of NTPC, Power Grid Corporation of India, Power Finance Corporation and Rural Electrification Corporation, under the Ministry of Power of the Centre.

For FY16, the company reported total revenue of Rs 715.65 crores and profit before tax (PBT) of Rs 48.12 crore compared to total revenue of Rs 71.10 crore and a PBT of Rs 13.57crores in the previous FY.