<p>Hindustan Power today said it will issue bonds worth Rs 380 crore on private placement basis to Yes Bank for three of its projects in Gujarat.<br><br>"The clean energy arm of Hindustan Power achieved the distinction of entering into the credit enhanced bond market with the issue fully underwritten by YES Bank Ltd," the company said.<br><br>Under the partial credit guarantee scheme of IIFCL, the infrastructure financing institution will provide a 'first loss' partial credit guarantee to the bondholders and has received an irrevocable back-stop guarantee with the Asian Development Bank (ADB).<br><br>Placement of these bonds besides opening a new market for financing infrastructure projects, would also significantly bring down the cost of capital for the projects.<br><br>"With the announcement of this transaction we will be refinancing the existing debt in 3 solar SPV's of ours through the placement of Rs 380 crore worth of bonds with Yes Bank at an attractive coupon of 10.05 per cent for a tenure of 10 years," Hindustan Power Chairman Ratul Puri told reporters.<br><br>This, he added, is a significant milestone for the country in its push towards achieving 100 GW of solar by 2022 and inching closer to the government's agenda of 24X7 power to all.<br><br>The power company will issue secured, rated, listed, partially guaranteed, debentures worth Rs 380 crore on a private placement basis to YES Bank LtdBSE -0.16 % for three of its "AA+ SO rated" projects in Gujarat.<br><br>Most of the infra projects are rated BBB or A while investors seek higher ratings.<br><br>The bonds will be listed on NSE.<br><br>Currently, banks provide most of the funding for infrastructure projects in India, whereas worldwide Debt Capital Markets are the major source of such financing.<br><br>(PTI)</p>
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