Waste-to-energy maker SAEL has lined up a 1,500-crore bond issue, according to sources aware of the matter. It has hired investment bank Barclays and law firm Khaitan & Co as advisers on the issue.

The rupee bond issue is for meeting funding requirements for a capex plan of Rs 10,000 crore that the company has, which will be spread over the next two years. The company was earlier planning a dollar bond issue but shelved it due to upheaval in global bond markets.

The Delhi-headquartered company has the largest capacity of waste-to-energy power generation of around 160 megawatts at present. It uses stubble that is left as a by-product from rice cultivation to generate energy. The company has a plan to set up 1 gigawatt of such waste to energy and solar projects across multiple states. SAEL chairman and managing director Jasbir Alwa declined to comment on the fund raise.

The company currently has 25 projects with a mix of waste to energy and ground-mounted solar projects. Stubble burning is a source of significant air pollution during winters in north India. According to market experts, the company could be attractive to investors because it has a strong environmental, social and governance (ESG) focus to its business.