Giving a fair price for a high-yield deal from India is always challenging. Greenko Wind Projects (Mauritius) opens again at the Asian high-yield market with the three-year non-call two green bond for as much as $750m.
But in order to run well, the company must offer generous prices for the investors.
Although Greenko is quite famous to overseas investors, the company faces lower-rated borrowers. This is due to the dearth of issuance these days impacting the tumultuous market for the lower-rated borrowers. The bonds will have Ba1/BB rate covering the deal price at par to yield 5.5% with initial price guidance at 5.8% area.
Given the different situation MIAL (Mumbai International Airport) credit conducted for a U.S. dollar debut offering and expected BB+ is yet able to sell their bonds. A syndicate head of Greenko deal, said that Greenko is different from other companies. It is one of the better quality high-yield companies. So, there was no push back from investors. The person added that the feedback price was broad from the low to high 5% area.
It is true that 5.5% is higher than the company’s secondaries, however it is significant to consider a new issue concession, for the first high yield deal. The latest highest yield deal was Macau casino operator Studio City offered on February 9th for as much as $350m.
On the other hand, Lucror Analytics argued that the new Greenko bonds are too sophisticated. For 2025 only for instance, the company has a 5.55% yielding 4.2%. Respectively the company aims at yielding a 5% in 2026 for a 3.85%. Lastly, in 2028 they expect to yield at 5.3% for a 4.3%. The analysts added that Greenko’s new market is too tough these days. Plus, the company’s hydro storage plant project is not yet operational. The company said the project is ready by the end of 2023.
