ReNew Refinances $325 Million Non-Convertible Debentures

The debentures were backed by funds raised through USD bonds


Independent renewable power producer ReNew has refinanced Non-Convertible Debentures (NCDs) worth ₹23.91 billion (~$288.3 million), issued by its subsidiaries in October 2020.

The refinancing was achieved through the redemption of USD bonds. The NCDs, initially issued to India Green Energy Holdings, a Mauritius-based special purpose vehicle, were backed by $325 million raised through senior secured bonds. These bonds, carrying a coupon rate of 5.375%, were slated to mature in April 2024.

ReNew used the proceeds of a long-term amortizing project loan obtained from a leading non-banking financial company to refinance the NCDs.

This move resulted in the redemption of the USD bonds, three months ahead of their scheduled maturity.

The refinancing operation was executed at an interest cost of less than 9%, which is expected to reduce the overall borrowing cost on this debt pool by more than 200 basis points.

ReNew Energy said the move extends the maturity beyond 15 years through structured amortizations.

Kailash Vaswani, Group CFO of ReNew, said, “We will continue to look at multiple pools of capital to further reduce our borrowing costs, extend maturities on existing debt, and reduce refinancing risk without depleting the company’s growth capital.”

ReNew’s clean energy portfolio stood at ~13.8 GW on a gross basis as of September 2023.

Last December, ReNew blocked transmission capacity in advance for its 3.1 GW of awarded projects, which are pending power purchase agreements. The company had emphasized the critical nature of blocking transmission capacity as a proactive approach. The letters of award for these projects have given the company a strategic advantage in securing transmission capacity.

Earlier, ReNew signed a 50:50 joint venture agreement with clean energy solutions provider Gentari to develop solar, wind, and energy storage assets to achieve a clean power capacity target of 5 GW in India. The partnership follows Gentari’s initial investment for a 49% equity stake in ReNew Power’s 403 MW  power project that the latter announced in May this year.