India’s largest independent power generation company in the renewable energy sector, ReNew Power Limited, has raised yet another round of funding from international investors as it continues to aggressively push to expand its project pipeline.
ReNew Power Thursday has concluded a green bond issue of US$375 million ( ~ ₹ 2580 Crores ), which would be used for capital expenditure on green projects and refinancing external commercial borrowings.
Green Bonds are debt instruments that allow investors to invest in sustainable projects while offering issuers affordable funding to finance these projects.
Like all bonds, green bobds are loans from investors to issuers, with interest paid to bond owners for a given period before the principal is repaid.
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, JP Morgan 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.
Founded in 2011, by Suman Sinha, ReNew Power has raised a total of $2B in funding over nine rounds.
To recall, a year back ReNew Power had acquired of Ostro Energy Private Limited to create the country’s largest clean energy firm by installed capacity.
Source - Renew Power - Press Release