The Indian Renewable Energy Development Agency (IREDA) has 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 green shoe option of ₹10 billion (~$119.7 million), received an overwhelming response from investors. The bonds were oversubscribed by 2.65 times.

The funds have been raised at an annual interest rate of 7.44% for ten years and two months.

Pradip Kumar Das, Chairman and Managing Director of IREDA, said, “We are happy with the overwhelming response to our bond issuance. The oversubscription by 2.65 times underscores the trust and confidence that investors have in IREDA’s vision and its crucial role in driving renewable energy growth in the country. This successful capital raising will enable us to further strengthen our efforts in financing green energy projects, contributing to India’s goal of achieving 500 GW non-fossil fuel installed capacity target by 2030.”

Recently, IREDA approved loans amounting to ₹373.54 billion (~$4.48 billion) and disbursed ₹250.89 billion (~$3.01 billion) in loans during the financial year (FY) 2023-24. The approved and disbursed amounts were the highest-ever annual figures recorded by the lender.

The loan approvals were up 14.63% year-over-year (YoY) from ₹325.87 billion (~$3.91 billion), and the disbursements increased by 15.94% from ₹216.39 billion (~$2.59 billion) at the end of FY 2023.

IREDA reported a 45.9 % YoY increase in profit after tax for the fourth quarter of FY 2024 to ₹373.76 million (~$4.4 million) from ₹256.16 million (~$3.07 million).

Last year, the company launched its retail division with an emphasis on providing loans in the business-to-consumer (B2C) sector. The strategic initiative is aimed at attracting borrowers under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan program, rooftop solar consumers and other B2C segments.