ReNew Energy Subsidiary Raises $400 Million via Green Bonds

The funds will be used to refinance existing debt and finance ReNew's growth initiatives


ReNew Energy has raised $400 million through its fully owned subsidiary Diamond II from senior secured green bonds.

The green bonds issued by ReNew’s subsidiary attracted significant investor interest from the United States, Europe, and Asia.

This marked the first high-yield issuance out of India in over a year.

The funds raised from the issuance will be used to refinance existing dollar-denominated debt and finance ReNew’s growth initiatives.

“The order book was oversubscribed about four times with a total investor demand aggregating in excess of $1.5 billion, resulting in 35bps tightening of pricing,” the company said.

ReNew said the issuance highlights the company’s capacity to raise capital and reinforces its commitment to maintaining a robust balance sheet and strong liquidity position for stakeholders.

The newly issued corporate-style notes have a coupon rate of 7.95% in U.S. dollars and have received a Ba3 rating from Moody’s and a BB rating from Fitch.

These notes have been certified by the Climate Bonds Initiative and are in line with the ICMA Green Bond Principles. A development impact assessment has been included in the notes.

Kailash Vaswani, ReNew’s President of Corporate Finance, said the successful green bond issuance has revived India’s high-yield dollar bond market after a long hiatus. The substantial interest from global investors reflects the increasing demand for renewable energy and reinforces ReNew’s status as a leader in the industry.

“Raising corporate funds at an expected rate consistent with our long-term plan and will enable us to accelerate our renewable energy initiatives, reduce our cost of capital, drive innovation, and make a positive impact on the environment,” he said.

In the current fiscal year of FY2023, ReNew has already paid off over $1 billion to its offshore bondholders.

The company refinanced $525 million in the domestic markets in the previous fiscal year and repaid an additional $480 million in debt through its internal cash flow generation.

As of September 30, 2022, ReNew’s clean energy portfolio stands at approximately 13.4 GW on a gross basis.

The independent renewable power producer’s net loss narrowed to ₹4 billion ($49 million) in the third quarter of the financial year 2023, compared to a net loss of ₹6.4 billion ($77 million) year-over-year.

The company announced $1.1 billion in external commercial borrowing for the company’s hybrid round-the-clock battery-enabled renewable project.


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