Working Note: Greenko Power Ii Restricted Group Iv

Knowledge Snapshot

Last updated: 2026-06-12

Issuer Overview

• Greenko Power II Limited is a Mauritius financing SPV for Greenko Energy Holdings' Indian Restricted Group IV renewable assets.
• The substantive credit perimeter is Greenko Power II Limited and the restricted entities forming Restricted Group IV, based on combined financial statements prepared for the Senior Notes reporting requirements.
• Restricted Group IV is not an independent legal group; it is a carve-out reporting perimeter. Do not treat the issuer as a standalone operating company.

Core Credit Context

• The covered security in the current report is the USD 1.0bn 4.30% Senior Notes due 13 December 2028, issued in December 2021 and guaranteed by Greenko Energy Holdings.
• The 2021 Offering Memorandum describes proceeds being used to repay or refinance rupee-denominated debt of Indian restricted entities. The core repayment source is renewable-asset cash flow routed through the restricted entities, onshore debt service, and offshore note payments.
• The parent guarantee is a credit support, but the bond should not be analyzed as the same credit as unrestricted Greenko Energy Holdings parent debt.

Business and Asset Context

• At issue, the Offering Memorandum described 1,600.3MW of operating renewable assets, consisting of 1,100.3MW wind and 500.0MW solar.
• FY2025 and 1H FY2026 combined financial statements disclose revenue by wind, solar, and hydro. Current financial analysis should distinguish the OM-time asset description from later accounting revenue categories.
• Restricted Group IV benefits from operational renewable assets and long-term PPAs, but power output, receivable collection, FX, hedging costs, and refinancing market access drive bondholder outcomes.

Financial and Debt Context

• FY2025 public financials showed revenue and EBITDA weakening versus FY2024, while 1H FY2026 improved versus 1H FY2025.
• Key public figures in the current report include FY2025 revenue of US$212.6mn, FY2025 EBITDA of US$154.3mn, 1H FY2026 revenue of US$153.8mn, and 1H FY2026 EBITDA of US$127.7mn.
• End-September 2025 accounting borrowings were US$818.4mn and cash plus bank deposits were US$74.4mn. Accounting borrowings are not the same as the legal outstanding principal of the 2028 notes.
• Detailed financial figures, simplified ratios, bond terms, and limitations are stored in data/greenko_power_ii_restricted_group_iv_key_metrics_20260512.json.

Capital Structure and Structural Points

• The notes include scheduled mandatory amortization and an MCS amortization mechanism, so the instrument is not a pure bullet bond.
• MCS non-payment is not itself a default under the current report's understanding, so the actual outstanding principal must be verified separately.
• Indian restricted-entity debt, offshore note claims, parent guarantee provisions, cash controls, DSCR, DSRA, cash-trap tests, and hedging arrangements are central to structural analysis.

Credit Strengths

• Operational renewable asset pool with wind, solar, and hydro revenue categories.
• Long-term PPA framework and some offtaker diversification described in the Offering Memorandum.
• Parent guarantee from Greenko Energy Holdings and the group's international capital-market track record.
• Positive operating cash flow in the public FY2025 and 1H FY2026 financial statements.

Credit Weaknesses and Structural Constraints

• 2028 refinancing and residual principal are central because the current legal outstanding amount and actual amortization track record were not confirmed from public materials.
• Trade receivables and ECL allowance are material and require continued attention to offtaker collection.
• INR revenue supports USD debt, so hedge coverage, hedge cost, and rollover terms affect debt-service capacity.
• Parent-level Sikkim Urja / Teesta III, pumped-storage investment, and broader Greenko refinancing needs may affect guarantor support capacity unless specifically ring-fenced.

Reliable Core Sources

• SGX 2021 prospectus page and Offering Memorandum for bond terms, fund flow, guarantee, asset description, and structure.
• SGX FY2025 and 1H FY2026 financial-results announcements and PDFs for Restricted Group IV financials.
• Greenko Group official FY2025 results PDF as a company mirror of the SGX source.
• data/greenko_power_ii_restricted_group_iv_key_metrics_20260512.json for structured extracted metrics and limitations.

Issuer Notes

Last updated: 2026-06-12

Ongoing Follow-Up Items

• Track the 2028 maturity and refinancing plan before entering 2027, including residual principal, mandatory amortization, MCS amortization, parent refinancing capacity, and market access.
• Monitor FY2026 annual Restricted Group IV financials, including revenue by wind, solar and hydro, EBITDA, operating cash flow, receivables, ECL allowance, borrowings, cash, and bank deposits.
• Monitor DSCR, DSRA, cash trap, distribution lock-up, reserve accounts, restricted-payment compliance, waiver/amendment history, and covenant headroom if trustee or compliance materials become available.
• Track offtaker concentration, receivable days, state distribution company exposure, late-payment-surcharge collection, ECL allowance, and curtailment history.
• Monitor INR/USD hedge coverage, hedge maturity, premiums, collateral requirements, counterparties, and rollover risk.
• Track Greenko Energy Holdings leverage, refinancing, shareholder support, rating actions, Sikkim Urja / Teesta III restoration, and pumped-storage capex because these affect guarantor support capacity.

Unresolved Issues and Items to Check Next Time

• Current legal outstanding amount of the 2028 notes after mandatory and MCS amortization.
• Actual history of mandatory amortization, MCS payments, and any MCS unpaid amount carried forward.
• DSCR, DSRA balance, cash-trap status, restricted-payment compliance, reserve balances, waiver/amendment history, and hedging-account status.
• Major offtaker-by-offtaker revenue and receivables, current PPA terms, remaining PPA life, tariffs, curtailment history, and collection days.
• Latest full Moody's, Fitch, S&P, or other international rating reports for Greenko Power II / Restricted Group IV.
• Latest direct domestic rating rationale for Greenko Power II / Restricted Group IV, if any.
• Current market price, yield, spread, WAL, and comparable Indian renewable restricted-group bond levels.

Analytical Cautions

• Do not mix Greenko Power II / Restricted Group IV with unrestricted Greenko Energy Holdings parent debt. The parent guarantee matters, but the repayment source and structural protections are specific to RG IV and the notes.
• Do not treat Sikkim Urja / Teesta III as a Restricted Group IV asset unless specifically confirmed inside the RG IV perimeter. Treat it as a parent-guarantor and capital-allocation issue unless proven otherwise.
• Do not infer the current legal note balance from accounting borrowings. Indian NCD balances, offshore note balances, mandatory amortization, and MCS payments must be reconciled separately.
• Do not treat MCS amortization as guaranteed deleveraging; non-payment of MCS is not itself a default under the current report's understanding.
• Do not use EBITDA/finance-cost coverage as a substitute for DSCR or cash available for debt service after amortization, hedge premiums, taxes, working capital, and reserve requirements.

Report Wording Cautions

• Describe the issuer as a Mauritius financing SPV for Restricted Group IV rather than as a standalone operating company.
• State that Greenko Energy Holdings provides a parent guarantee, but avoid any wording that implies government support or a sovereign guarantee.
• Separate OM-time asset capacity from later financial-statement revenue categories. The OM described wind and solar capacity at issue; later combined financials disclose wind, solar and hydro revenue.
• Use "not confirmed" rather than inference for DSCR, DSRA, cash trap, hedge coverage, current legal outstanding amount, and market levels.

Follow-Up on Management Strategy, Investment Plans, and Financial Policy

• Monitor Greenko Group's broader refinancing, pumped-storage and battery-storage investments, Sikkim Urja restoration and insurance recoveries, and shareholder funding because these may affect parent-guarantor capacity.
• Watch for any change in capital allocation between restricted groups, parent projects, acquisitions, and debt repayment.
• Check whether management provides clearer disclosure on amortization, compliance certificates, reserve accounts, and hedging.

Items to Check for Ratings and Bond Investors

• Rating agency reports, outlooks, downgrade triggers, and treatment of the parent guarantee, refinancing risk, receivables, FX, and Sikkim/pumped-storage exposure.
• Dealer runs, Bloomberg balances, trustee/compliance reports, DSCR/DSRA certificates, and cash-control information before any investment decision.
• Relative value against Greenko parent bonds and other Indian renewable restricted-group bonds after confirming current balance and WAL.