Why Greenko’s high-yield structure won’t be replicated

Author: Ashley Lee | Published: 4 Feb 2015

Market participants in India are unsure whether Circular 41 by the Reserve Bank of India (RBI) applied directly to Greenko’s high-yield bonds, issued last July. But they agree that the structure will likely be a one-off.

RBI issued Circular 41 on November 25, only months after renewable energy company Greenko’s bonds were priced. The bonds were structured to bring investors closer to the onshore subsidiaries, but the RBI appeared to condemn the structure.

It spooked the nascent India high-yield market. Issuers planning similar deals– most notably by Mytrah...