Government-owned lender Indian Renewable Energy Development Agency (IREDA) has raised ₹9.1 billion (~$106.16 million) by issuing privately placed subordinated Tier II bonds.

This financing is for a 10-year tenure at an annual coupon rate of 7.74%.

The issuance of Tier-II Bonds aims to tap into the current financial market’s liquidity and support the company’s borrowing plan.

IREDA aims to use the funds to enhance its Tier-II capital to increase its net worth and capital risk-weighted assets ratio.

Recently, IREDA 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 targeted enhancing its Tier-I capital for a stronger financial foundation.

In 2024, IREDA reported an increase in loan approvals and disbursements. Loan approvals surged to ₹310.87 billion (~$3.6 billion) as of December 31, 2024, compared to ₹135.58 billion (~$1.58 billion) in the corresponding period of 2023, marking a 129% increase.

Loan disbursements grew by 41%, reaching ₹172.36 billion (~$2 billion) in 2024, up from ₹122.20 billion (~$1.42 billion) in 2023. The agency’s loan book outstanding stood at ₹690 billion (~$8.04 billion), a 36% growth over the previous year’s ₹505.8 billion (~$5.89 billion).

In January 2025, the company announced plans to raise ₹50 billion (~$588.24 million) through a qualified institutions placement (QIP) of equity shares. The QIP would be conducted in one or more tranches per applicable laws and aims to limit the government of India’s maximum shareholding dilution in IREDA to 7% in the post-issue paid-up equity capital.

In the third quarter of the financial year (FY) 2024-25. IREDA reported a profit after tax of ₹4.25 billion (~$49.52 million), representing a 27% year-over-year growth.

In 2024, IREDA raised ₹15 billion (~$179.5 million) through bonds, reflecting strong investor confidence in India’s renewable energy sector.