ReNew Power Raises $325 Million through Overseas Green Bonds

The bonds were offered at a rate of 5.375% with a maturity period of three-and-a-half-years


ReNew Power, an Indian independent power producer, has raised around $325 million through overseas green bonds.

Green bonds are financial instruments designed to raise money for climate and sustainability-related projects and activities.

According to Mercom’s sources, the company offered its overseas green bonds at a 5.375% rate, with a maturity period of three-and-a-half-years.

The company intends to utilize the proceeds to expand its capacity and to refinance high-cost local debt. It is expected to use around $225 million to repay its local debt. Besides that, the company received an order book of nearly $1.9 billion.

Earlier this year, the independent power producer raised $450 million through a dollar bond issuance. The bonds were offered at a coupon rate of 5.875% with an average maturity of five-and-a-half-years. The company intended to utilize the proceeds worth nearly $65 million to meet its future capital expenditure requirements.

As of June 2020, ReNew Power had a portfolio of 2.1 GW of large-scale solar projects in operation, with around 3 GW of solar projects in the pipeline, according to Mercom’s India Solar Project Tracker.

Notably, ReNew Power was among the top three utility-scale solar project developers in India in the calendar year 2019. According to Mercom’s India Solar Market Leaderboard 2020, the top three developers accounted for nearly 35% of total large-scale installations in 2019.

Previously, ReNew Power announced its plans to set up a 2 GW solar cell and module manufacturing facility in the country, with an investment of ₹15 billion (~$200 million) to ₹20 billion (~$266.7 million). The company said that it was in talks with different states to set up this unit. The new manufacturing facility would cater to its own generation business’ needs and that of the industry.

In June, ReNew announced that it signed an agreement to acquire Climate Connect (also known as Regent Climate Connect Knowledge Solutions Private Limited). Climate Connect is a technology company that deals in digital analytics, software development, artificial intelligence, and machine learning, specializing in the power market domain.