Greenko and Muthoot Finance raise $1.2 billion overseas

Greenko Energy Holdings and Muthoot Finance recently raised a total of $1.25 billion in offshore debt markets. Greenko secured about $1 billion, while Muthoot Finance raised $250 million. Greenko's bond was priced at 7.25%, better than the initial target of 7.62%. The bond attracted over $3 billion in investor interest but Greenko decided to retain only $1 billion. The funds will refinance Greenko's existing $750 million bond due soon and will also support other financing needs. Greenko is involved in renewable energy, operating 7.5 gigawatts of capacity and working on additional projects. The company is also seeking $850 million to buy out a Japanese investor, Orix. Discussions are ongoing with lenders, including BlackRock and Nomura. Muthoot Finance’s $250 million was raised through its existing bond, yielding about 6.651%. This issuance was driven by renewed investor interest after a credit rating upgrade. The funds will help expand Muthoot’s lending activities. Investors are increasingly interested in Indian debt markets due to attractive yields. Recent bonds have offered yields significantly higher than those seen in the US. Indian companies, especially non-banking financial firms, are looking to international markets for funding amid ongoing liquidity issues domestically.