Mytrah, whose investors including Henderson Global Investors Ltd. and R&H Trust Co Ltd., may list the assets as a business trust on Singapore Exchange Securities Trading Ltd., the Hyderabad-based company said today in a statement.
The move will help Mytrah reduce its cost of capital from the 12 percent it currently pays on senior debt and the higher rates it pays on mezzanine loans, Gus Hochschild, a London-based analyst at Mirabaud Securities LLP, said today in an e-mailed note. Other Indian Singapore-listed business trusts pay less than 10 percent, according to Hochschild.
“By such means, Mytrah should realize a much higher value of the existing assets than the market ascribes,” he said.
The business trust would acquire Mytrah’s wind assets as part of the listing, with the developer keeping a stake in the vehicle. In addition to repaying long-term and mezzanine debt, Mytrah will use proceeds to boost its 309.9 megawatts of operational wind to more than 600 megawatts this year, with plans for more than 1,200 megawatts by the end of 2014. The company targets 1,500 megawatts by 2015.
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