Government-owned lender Indian Renewable Energy Development Agency (IREDA) has issued its first-ever perpetual bonds worth ₹12.47 billion (~$144.5 million) at an annual coupon rate of 8.4%.

By issuing the bonds, IREDA targets enhancing its Tier-I capital for a stronger financial foundation.

IREDA also received a fund of ₹244.8 million (~$2.6 million) from the Income Tax Department towards partial relief for the assessment year (AY) 2011-12 related to certain disallowances.

A refund of ₹1.95 billion (~$22.6 billion) is also under process for similar relief for 2010-11, 2012-13, 2013-14, and 2015-16 to 2018-19.

In January this year, IREDA announced plans to raise ₹50 billion (~$588.24 million) through a qualified institutions placement of equity shares.

Pradip Kumar Das, Chairman and Managing Director of IREDA, said strengthening the capital base through perpetual bonds will enable the agency to scale up financing for renewable energy projects and accelerate India’s energy transition.

IREDA reported increased loan approvals and disbursements for the year ending December 31, 2024. Loan approvals surged 129% to ₹310.87 billion (~$3.6 billion)from ₹135.58 billion (~$1.58 billion) in the corresponding period of 2023.

In 2024, the company’s profit after tax for the fourth quarter increased 45.9% year-over-year to ₹373.76 million (~$4.4 million) from ₹256.16 million (~$3.07 million). This growth was primarily driven by the consistent growth in the company’s loan book and a significant reduction in its net non-performing assets.

In June last year, IREDA  raised ₹15 billion (~$179.5 million) through bonds, reflecting strong investor confidence in India’s renewable energy sector. The bond issuance, which included a base issue of ₹5 billion (~$59.8 million) and a greenshoe option of ₹10 billion (~$119.7 million), received an overwhelming response from investors, being oversubscribed by 2.65 times.

In January this year, IREDA approved a loan of ₹21.28 billion (~$247.66 million) for GMR Smart Electricity Distribution to part finance smart meter installation in Uttar Pradesh.