ReNew Raises $375 Million Through Green Bond Issue
The capital raised is expected to be utilized by ReNew to refinance its external commercial borrowings, reduce interest rate risks and lower cost of debt
March 12, 2019
Indian renewable energy independent power producer (IPP) ReNew Power Limited, has announced that it has successfully concluded a green bond issue of $375 million. Barclays (B&D), Goldman Sachs, HSBC, J.P. Morgan, and YES Bank were the book runners for the green bond issue.
The bond issue comprises five-year non-call two notes, offered at a yield of 6.67 percent per annum. The bond offering has been rated as BB by Fitch Ratings. The capital raised through this green bond issue is expected to be utilized for refinancing of outstanding external commercial borrowings and as capital expenditure for eligible renewable energy projects.
In February 2019, Mercom reported on ReNew Power securing fresh debt financing of up to $350 million (~₹24.91 billion) from the Overseas Private Investment Corporation (OPIC).
According to Renew Power, the dollar-denominated bonds received a positive response and fully subscribed by asset managers, banks and pension/life funds from the U.S., Europe, and Asia. The issue was opened for subscription on March 5, 2019, and closed on the same day.
Sumant Sinha, chairman, and managing director ReNew said, “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. 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 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.”
Kailash Vaswani, deputy CFO of ReNew 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 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.”
Shaurya is a staff reporter at MercomIndia.com with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom.