Indian renewable energy developer ReNew Energy Global announced that its wholly-owned subsidiary, India Clean Energy Holdings, has raised $400 million at 4.5% by issuing senior secured dollar notes.
Climate Bonds Initiative certified the dollar notes as green bonds, and the bonds would be listed on the Singapore Exchange. The green bonds have a tenor of 5.25 years.
Green bonds are financial instruments designed to raise money for climate and sustainability-related projects and activities.
The company’s subsidiary would utilize the amount raised through bonds to refinance its existing high-cost debt and fund capital expenditure in renewable energy assets or other purposes permitted by law.
Investors from Asia and the United States subscribed to these notes at about 40% each, and Europe, Middle East, and Africa (EMEA)-based investors subscribed to the remaining notes. Pension funds and long-only fund managers subscribed to the bulk of notes.
The renewable energy developer, through its subsidiaries, has raised around $3.5 billion across eight green bond issuances to date, of which seven are outstanding.
Kailash Vaswani, President – Corporate Finance, ReNew Energy Global, said, “We will continue to seek fundraising opportunities to refinance our existing debts with lower-cost fixed-rate green bonds.”
In February 2021, Renew Power signed an agreement for a business combination with RMG Acquisition Corporation II, a special purpose acquisition company (SPAC), resulting in ReNew Power becoming a public company. In April 2021, the company announced the successful pricing of $585 million of 4.5% U.S. dollar-denominated senior secured ‘green bonds’ due 2028.
Mercom had earlier reported that ReNew Power raised around $325 million through overseas green bonds. In September 2021, ReNew won a capacity of 300 MW in Solar Energy Corporation of India’s auction for 1,200 MW interstate transmission system (ISTS)-connected wind power projects (Tranche-XI).
The company recorded a revenue of ₹21.31 billion (~$287 million) for the second quarter (Q2) of the financial year (FY) 2022, a 44% year-over-year (YoY) increase compared to the same period last year.
The renewable energy developer had 7.4 GW of operation renewable energy capacity as of December 2021. The current fiscal year’s 1.5 GW of capacity addition included over 1.3 GW of utility-scale solar projects.