JSW Energy Plans To Raise $750 Million By Selling Masala Bonds
Sajjan Jindal-led JSW Energy Ltd. plans to raise around $750 million by selling masala bonds, and the proceeds will be used to fund its expansion plans as well as repay some of its existing debt of over Rs 10,500 crore.
JSW Energy has sought shareholders' approval for the fundraising.
JSW Energy has also set a target of achieving 10,000 megawatt of installed capacity by 2020, a quarter of which will be contributed by renewable energy sources.
In his address to shareholders in the company’s annual report, Chairman Jindal said that as a growth-focused company, JSW Energy has a strategic vision to build a portfolio of 10,000 MW through both organic and inorganic means.
"We aim to further diversify our power generation portfolio by expanding the footprint into the renewable energy segment, including solar and wind, apart from evaluating inorganic growth opportunities in these segments," said Jindal.
The company, sitting on a debt of over Rs 10,050 crore, will continue to look for value-accretive acquisitions while balancing the risk-return dynamics, he added.
Resolution of stressed power assets is expected to result in consolidation in the sector, providing attractive growth opportunities to well-capitalised companies like JSW Energy, the chairman said.
The company will continue to focus on growth opportunities in the core power sector as well as related areas, as it has scrapped its plans to enter the electric vehicles manufacturing business.
"We found higher-than-anticipated uncertainties (in EV business) and hence decided to discontinue these ventures and focus on growth opportunities in the power sector and related areas," Jindal said.
JSW Energy also plans to increase its long-term Power Purchase Agreement proportion to 85 percent from the current levels. "On the existing business, we retain our focus on increasing the long-term PPA proportion steadily, thereby further de-risking the business," Jindal added without disclosing the present proportion.
JSW Energy closed 2018-19 with a net income of Rs 695 crore on the back of Rs 9,506 crore revenue and power generation of 22,088 million units.
On Wednesday, JSW Energy shares fell 1.27 percent to Rs 69.70 apiece on the BSE while the benchmark Sensex shed 0.36 percent to end the day at 37,847.65 points.