Mytrah Energy says USD-70m finance deal is in line with RBI rules

Dec 12, 2014 - Indian wind farm developer Mytrah Energy Ltd (LON:MYT) today said the recent USD-70-million (EUR 56.5m) financing package it secured has been given the green light by the Reserve Bank of India (RBI).

In November, the firm issued an INR-3.97-billion (USD 64m/EUR 51m) India-listed non-convertible bond, which on December 1 commenced trading on the Bombay Stock Exchange (BSE). The package also included a loan of USD 5 million.

On November 25, a few days after Mytrah’s announcement of the obtained financing, RBI warned that companies engaging in financial transactions violating India’s Foreign Exchange Management Act (FEMA) shall be “liable for penal action”. Without mentioning any names, the bank said in a statement that “some Indian companies” have issued overseas debt at rates surpassing the limits set under the act. Soon after that, Greenko Group Plc’s (LON:GKO) notes plummeted to the lowest trading levels on the Singapore Exchange.

In today’s press release, Mytrah stressed that its recent financial deals have been cleared by the RBI and therefore are not subject to the announcement from November 25. As previously announced, the wind power producer will use the proceeds to refinance an existing INR-900-million mezzanine facility and to support the development of new wind projects.

Mytrah expects to bring its underlying earnings before interest, tax depreciation and amortisation (EBITDA) near USD 65 million in fiscal 2014/15.

(USD 1 = EUR 0.807)
(INR 100 = USD 1.602/EUR 1.292)

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