ReNew Power to raise $460 mn in green bonds to finance domestic debt

ReNew Power this way gets shielded from exchange rate volatility, while the FPI hedges its exposure

ReNew Power is in the market to raise $460 million through green bonds in rupee equivalent to finance its domestic debt, according to multiple sources familiar with the matter.

The bond issuance will happen through an orphan special purpose vehicle (SPV) — a structure where a foreign portfolio investor (FPI) will raise $460 million in dollar debt from global investors. ReNew Power will issue rupee bonds to this FPI for the full amount. In such an orphan SPV structure, the FPI doesn’t have any relationship with the company issuing the rupee bond.  

The FPI — in this case India Green