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(Bloomberg) — Hanuman Wind Power, a Hong Kong-based unit of troubled Thai renewable energy firm Energy Absolute Pcl, postponed a junk bond offering for a second time after it failed to attract the desired investor demand, according to a person familiar with the matter who asked not to be identified.
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The company took the unusual step of extending the order-taking period for the green note by an additional day on June 10, underscoring the challenges the issuer faced in its aborted international bond debut. Part of the deal’s proceeds were earmarked to go to parent Energy Absolute.
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A representative for Energy Absolute didn’t immediately respond to a request for comment.
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Energy Absolute has faced financial stress since Thailand’s market regulator accused its founder and other former executives of fraud two years ago that triggered a brief suspension of the company’s shares. The company has since revamped its management, and last year it raised cash in a rights offering and won approval from Thai baht bondholders to extend the maturity of local debt.
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“We felt the bond structure was solid at the original offering, and that remains the case, but the parent’s corporate governance is too poor to get us comfortable with the credit,” said Lakshmanan R, Head of South, Southeast Asia & GCC Corporates at CreditSights. While Hanuman Wind’s latest notes offered a yield in the mid-to-high 9% range, rising US Treasury rates for 15-year paper have made them less attractive from both a fundamental and valuation perspective, he added.
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The latest dollar fundraising attempt came about five months after it pulled a similar transaction. In February, the company postponed a planned bond sale after discussions with investors. At the time, Energy Absolute said it needed to revise the offering documents to address investor feedback.
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Read also: Hanuman Wind Power Postpones Up to $300M 15NC5 Bond Offering
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—With assistance from Janice Huang.
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(Updates story with quote fifth paragraph.)
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