Vector Green Energy to raise up to Rs 12 billion

Vector Green Energy Private Limited, a private-equity backed firm, is raising about Rs 12 billion via green bonds in the domestic market. The company will use the proceeds to pay off long-term debt and fund expansions with the residual money. Reportedly, the bonds will offer 6.4-6.8 per cent, with maturity in three years. The company is in talks with Axis Bank Limited and ICICI Bank Limited, which are helping the company raise the funds. The company took an 18-year long-term loan last year from three lenders – Axis Bank Limited, HDFC Bank Limited and the National Investment Infrastructure Fund – originally at 9.4 per cent. The refinancing of the bonds will help save funding costs significantly.