ReNew Power raises USD 375 mn via green bonds

Clean energy firm ReNew Power Thursday said it has concluded a green bond issue of USD 375 million, which would be used for capital expenditure on green projects and refinancing external commercial borrowings.

The five-year non-call two notes were offered at a yield of 6.67 per cent per annum, a company statement said.

The bond offer has been rated as BB by Fitch Ratings, the statement said.

The capital raised through the green bond issue will be utilised for refinancing outstanding external commercial borrowings and as capex in eligible green projects.

Barclays (B&D), Goldman Sachs, HSBC, JPMorgan and YES Bank were the book runners for the green bond issue.

 

The dollar-denominated bonds received excellent response and were fully subscribed by leading fund managers, asset managers, banks and pension and life funds from across the US, Europe and Asia, the company said.

The issue was opened for subscription on March 5 and closed on the same day.

"Our history of financial prudence, investing in high-quality assets and creating value for all our stakeholders has enabled us to regularly raise funds to fuel our rapid growth. We are happy that our bond offering received such an enthusiastic response, especially when the renewables sector is facing challenges in raising capital," ReNew Power Chairman and Managing Director Sumant Sinha said in the statement.

"The renewables market in India is firmly established and is growing rapidly. ReNew Power is India's largest IPP with more than 7,000 MW of commissioned and under-construction wind and solar projects," he said.

ReNew Power Deputy Chief Financial Officer Kailash Vaswani said: "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.