By Khushi Malhotra and Dharamraj Dhutia
MUMBAI (Reuters) -India’s GMR Energy plans to raise 16 billion rupees ($184 million) via five-year bonds, two sources told Reuters on Tuesday, as the holding firm for two major power units taps the market for fresh funding.
The company will offer an internal rate of return (IRR) of 14.60% to the investors of this issue, which include some alternative investment firms, foreign investors and foreign banks, the sources said.
The sources requested anonymity as the talks are private.
The company did not respond to a Reuters email seeking comment.
The company is the holding company for GMR Kamalanga Energy and GMR Warora Energy, both of which operate thermal power plants.
The proceeds of the issue will be used for inter-group lending, including repayment of an existing loan.
The bonds would be redeemed in installments, with 20% each at the end f the third and fourth year and 60% at the end of the fifth year.
The issue will have a put option at the end of February 2028 and at the end of every four months thereafter.
The bond will also have a make-whole call, wherein it will buyback 5 billion rupees of bonds in 12 months from the date of issue and the remaining 11 billion rupees in 21 months.
The company had previously raised funds through bonds in December 2023.
($1 = 86.8100 Indian rupees)
(Reporting by Khushi Malhotra and Dharamraj Dhutia; Editing by Nivedita Bhattacharjee)
