Connect with us

Hi, what are you looking for?

CleanTechnica
India’s largest independent power generation company in the renewable energy sector — ReNew Power Limited — secured yet another round of debt funding from international investors as it continues to aggressively push to expand its project pipeline.

Green Economy

Indian IPP ReNew Power Raises $375 Million Via Green Bond Issue

India’s largest independent power generation company in the renewable energy sector — ReNew Power Limited — secured yet another round of debt funding from international investors as it continues to aggressively push to expand its project pipeline.

India’s largest independent power generation company in the renewable energy sector — ReNew Power Limited — secured yet another round of debt funding from international investors as it continues to aggressively push to expand its project pipeline.

According to a press release, ReNew Power Limited managed to raise $375 million through placement of green bonds with international investors. The bond consists of two five-year non-call notes offered at a yield of 6.67% per annum. The bond offer has been rated as BB by FitchRatings. 

The company claimed the bond issue ‘received excellent response and were fully subscribed by leading fund managers/asset managers, banks and pension/life funds from across the US, Europe and Asia.’ The company, however, did not disclose names of the actual investors.

Proceeds from the bond issue shall be used to refinance outstanding debt and for investment in new projects. The company has a big pipeline of projects as it has been aggressively bidding in large-scale solar as well as wind energy projects. In fact, ReNew, along with Ostro Energy (which the former had acquired last year), has the largest share in wind energy projects awarded through auctions in India till date. Of the 11,057-megawatt capacity auctioned in India so far, ReNew Power and Ostro Energy have bagged a total of 1,775 megawatts.

ReNew has found huge success in getting overseas funding which has been comparatively cheaper than what the company can hope for from Indian lenders. In February, the company secured debt funding worth $350 million from the Overseas Private Investment Corporation (OPIC), the US Government’s development finance institution. OPIC had granted a loan of $250 million to ReNew in March 2016 as well.

The interest rate of 6.67% per annum that ReNew is going to pay the investors of its latest green bond is a highly attractive deal if one compares it with the cost of borrowing from Indian banks and lenders. The current prime lending rate of the Reserve Bank of India is 6.25%. Any banks and lenders would charge a huge markup on this rate before offering debt funding to Indian companies. The same was also mirrored in the statement issued by ReNew’s deputy Chief Financial Officer, Kailash Vaswani.

“The Bond issue was in line with our strategy of diversifying debt sources. The issuance enabled us to fix our interest rate risk and achieve a lower pricing than existing borrowing costs. The international bond investors have seen us deliver on committed performance and hence have come forward to invest in our new issuance.”

 
I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
 

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
 

Written By

An avid follower of latest developments in the Indian renewable energy sector.

Comments

You May Also Like

Clean Power

One of India’s largest renewable energy companies, Tata Power Renewable Energy, has entered into a power purchase agreement for a solar-wind hybrid project.  The...

Clean Power

Indian solar module manufacturer Insolation Solar has secured funding from a World Bank-backed fund for expansion of its production line.  The funding was released...

Buildings

We've already manufactured an awful lot of steel. There are hundreds of billions of tons of the stuff lying around, much of it obsolete.

Clean Transport

Lithium, lithium, lithium — as much as we cover the lithium market, there’s much more to cover. The lithium market is jumping. Below are...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.

Advertisement