Moody’s rates Greenko notes Ba2

Moody's Investors Service said it assigned a provisional Ba2 rating to the proposed $950 million seven-year senior unsecured notes of Greenko Dutch BV.

The proposed notes are guaranteed by Greenko Dutch’s holding company, Greenko Energy Holdings.

The outlook is stable.

Greenko Dutch is a special-purpose vehicle that will use the proceeds to subscribe to senior secured Indian rupee-denominated nonconvertible debentures to be issued by each of the other Restricted Subsidiaries in the restricted group (RG3), which are wholly/majority-owned by Greenko Energy, the agency explained. Greenko Dutch is also part of RG3.

Greenko Energy is a major energy company in India, with renewable energy capacity totaling 1.9 gigawatt (GW) as of March 31, 2017. Holders of the notes benefit from a guarantee from Greenko Energy and a share pledge over the issuer, thereby establishing a linkage between the credit profiles of Greenko Dutch, RG3 and Greenko Energy.

Proceeds from the nonconvertibles will be used to refinance the existing debt of the restricted subsidiaries, including the existing $550 million notes due 2019, project finance debt and shareholder loans associated with the operating projects that the parent transfers to RG3.

"The (P)Ba2 rating of the notes is supported by the portfolio diversity of RG3, with around 1.1 GW of operating assets across wind, solar and hydro technologies in six states in India," Moody's vice president and senior credit officer Ray Tay said in a news release.

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