SoftBank-backed SB Energy withdraws first bond issue: Report
SB Energy is a joint venture between SoftBank and Bharti Enterprises.
July 14, 2020 / 04:29 PM IST
The final 200 MW capacity developed by SB Energy (SoftBank) has now been commissioned, getting the world’s biggest solar park up and running. (Image Source: Chief Executive Officer KSPDCL)
SB Energy, a joint venture between SoftBank and Bharti Enterprises, on July 13 withdrew its first bond issuance following a weak response.
SB Energy had intended to raise $600 million through the issue and was planning to raise debt for five years at around 6.75 percent, The Economic Times reported.
Moneycontrol could not independently verify the story.
SoftBank declined to comment when contacted by The Economic Times. A Bharti spokesperson was not immediately available for comment.
Industry analysts told the publication that this would be the first renewable bonds issuance from India to go unsubscribed, though the portfolio contains solar Energy Corporation of India (SECI) and NTPC projects.
"They were not getting demand at the pricing they were seeking," an official told the publication.
"A recurring concern from investors has been to what extent and for how long will the sponsors, especially SoftBank, will bankroll the venture," the official added.
The issuance was going to be done by SB Energy Investments, and the report said the proceeds would have been used to refinance the existing project debt of some of the subsidiaries, fund transaction expenses, fund required reserves, and to lend the balance amounts to the company and its subsidiaries.