CleanMax has raised ₹2,500 crore through green non-convertible debentures to fund its large-scale renewable energy projects. Anchored by major institutional investors including IFC and NABFID, the issuance features maturities up to ten years. This capital injection allows the company to secure fixed-rate long-term funding for its expansion plans in the renewable sector.
CleanMax, a developer of renewable energy projects, has secured ₹2,500 crore by issuing green non-convertible debentures (NCDs). The capital is being raised through a private placement, which is a method where securities are sold to a select group of investors rather than the general public. The funds are earmarked for expanding the company's renewable energy capacity, a move that aligns with the broader push toward decarbonization in the industrial sector.
The financing is structured across five tranches with maturities spanning up to ten years. The coupons, or the fixed interest payments for these bonds, range from 8.25% to 8.76%. By opting for long-term financing with fixed rates, the company aims to protect its cash flow from potential interest rate fluctuations in the future, which is a common strategy for infrastructure projects that require heavy initial capital spending.
The issuance attracted participation from significant institutional players, including the International Finance Corporation (IFC), the National Bank for Financing Infrastructure and Development (NABFID), and India Infrastructure Finance Company. Domestic entities such as Aditya Birla Capital, IDFC First Bank, and Nippon India Mutual Fund also participated. The involvement of such institutions suggests a degree of institutional trust in the company's operational model and its ability to generate steady cash flows from its contracted renewable projects.
To ensure transparency and regulatory compliance, the debentures were issued under a Green Bond Framework. This framework, which received independent validation from CareEdge Advisory, aligns with domestic SEBI regulations and international standards known as the ICMA Green Bond Principles. This compliance is essential for investors who specifically look for ESG-compliant (Environmental, Social, and Governance) investments.
For investors monitoring the company, the primary focus will be on the execution of the new renewable projects. The renewable energy business is capital-intensive, and while debt financing helps in scaling, it also increases the company's debt obligations. Investors may track whether the company can maintain its operational efficiency to service this debt while ensuring the new projects are commissioned on time. Trust Investment Advisors Private Limited acted as the arranger for the deal, while Catalyst Trusteeship Limited has been appointed as the debenture trustee to manage the security interests of the investors.