Below is a Offer Document for the issuance of green bonds by Urjadata Solar Renewable Energy Pvt. Ltd. to finance the 4 MW solar power plant and PMKUSUM Component A&C (FLS) projects. This document outlines the key terms and conditions governing the bond issuance, as well as the rights and obligations of both the issuer and the investors.
OFFER DOCUMENT FOR GREEN BOND ISSUANCE
Issuer: Urjadata Solar Renewable Energy Pvt. Ltd.
Issue Size: ₹16 crore (INR)
Coupon Rate: 7% per annum
Bond Maturity: 15 years
Interest Payment Frequency: Quarterly
Principal Repayment: Amortizing (repaid in installments over the bond’s life)
Certification: SEBI Certified Green Bond (In Process)
Reporting Frequency: Annual environmental impact reports
1. Introduction
Issuer Overview:
Urjadata Solar Renewable Energy Pvt. Ltd. is a leading renewable energy company dedicated to promoting sustainable development through solar power projects. The company is focused on developing and operating renewable energy facilities that contribute to India’s green energy goals.
Purpose of the Bond Issuance:
The proceeds from this green bond issuance will be used to finance the development of a 4 MW solar power plant and additional PMKUSUM Component A projects across various locations in India. These projects aim to increase India’s renewable energy capacity and reduce carbon emissions, supporting the country’s sustainability initiatives.
2. Bond Terms
Bond Amount:
The total amount to be raised through this bond issuance is ₹16 crore (INR).
Coupon Rate:
The bonds will carry an annual coupon rate of 7%, payable quarterly to bondholders.
Bond Maturity:
The bonds will mature 15 years from the date of issuance.
Interest Payment Frequency:
Interest payments will be made quarterly on the specified payment dates.
Principal Repayment:
The principal will be repaid in installments over the life of the bond through an amortizing repayment schedule. Bondholders will receive both principal and interest payments on each payment date.
3. Use of Proceeds
The proceeds from the bond issuance will be allocated as follows:
4 MW Solar Power Plant: A portion of the proceeds will be used for land acquisition, equipment procurement, construction, and operations of the 4 MW solar power plant.
PMKUSUM Component A&C (FLS) Projects: Additional funds will be allocated to solar power projects under PMKUSUM Component A across multiple locations in India.
Project Phases:
- Land Acquisition: 5-10%
- Equipment Procurement: 65-70%
- Construction and Installation: 10-5%
- Project Management and Development: 3-5%
- Operation and Maintenance Reserve: 5-10%
These projects are expected to generate renewable energy, reduce CO2 emissions, and contribute to India’s commitment to sustainable development.
4. Environmental Certification
This green bond issuance is certified by SEBI as a green bond, ensuring that the proceeds will be used exclusively for projects that have a positive environmental impact. Urjadata Solar Renewable Energy Pvt. Ltd. commits to annual reporting on the environmental impact of the projects funded by this bond, including metrics such as renewable energy generated and CO2 emissions reduced.
5. Default Conditions and Remedies
Default Conditions:
The following events will constitute a default:
Missed Interest Payments: Failure to make scheduled interest payments to bondholders.
Failure to Repay Principal: Failure to repay the principal according to the amortization schedule.
Misuse of Proceeds: Use of the bond proceeds for purposes other than the specified green projects.
Violation of Covenants: Breach of any covenants outlined in the bond terms, including failure to maintain project certifications.
Bankruptcy or Insolvency: If the issuer files for bankruptcy, becomes insolvent, or undergoes legal proceedings related to insolvency.
Failure to Maintain Certification: Failure to maintain required environmental certification or non-compliance with the certification body’s requirements.
Remedies for Investors: In the event of a default, bondholders will have the following remedies:
- Acceleration of Principal: Bondholders may demand immediate repayment of the remaining outstanding principal and accrued interest.
- Legal Action: Bondholders may pursue legal action to enforce the bond terms and recover any unpaid amounts through the courts or arbitration.
- Appointment of a Trustee: A bond trustee, if appointed, may represent bondholders’ interests and manage the enforcement of remedies.
6. Governing Law and Jurisdiction
Governing Law: This bond issuance will be governed by the laws of India.
Jurisdiction: Any disputes arising out of or in connection with this bond issuance will be subject to the exclusive jurisdiction of the courts in India.
Dispute Resolution: In the event of a dispute between the issuer and bondholders, the parties agree to pursue resolution through arbitration or legal proceedings as per the laws of India.
7. Reporting and Transparency
Urjadata Solar Renewable Energy Pvt. Ltd. commits to providing bondholders with annual reports detailing the environmental impact of the projects financed by the green bonds. These reports will include key metrics such as renewable energy generated, CO2 emissions reduced, and project updates.
Financial performance reports, including interest payments and principal repayments, will also be provided to bondholders in accordance with the terms of the bond.
8. Miscellaneous Provisions
Amendments: Any amendments to the terms and conditions of this bond issuance must be approved by both the issuer and a majority of bondholders.
Confidentiality: All parties involved in the bond issuance agree to maintain the confidentiality of sensitive information related to the projects and bond terms.
Disclaimer:
Investing in green bonds involves risks, including the potential loss of principal. Investors should carefully read this offer document and consult with their financial advisors before making any investment decisions.