Aditya Birla Renewables Raises Rs. 2,500 Cr Through NCDs

Aditya Birla Group’s renewable energy arm, Aditya Birla Renewables Limited (ABReL), has successfully secured Rs. 2,500 crore through a private placement of non-convertible debentures (NCDs). These NCDs have a face value of Rs. 1 lakh each, for an aggregate amount of up to Rs. 2,500 crore, inclusive of a base issue size of up to Rs. 2,000 crore and a green shoe option to retain oversubscription of up to Rs. 500 crore.

This significant funding boost can fuel the company’s expansion plans, reduce existing debt, and support general corporate activities.

The NCD issue, underwritten by Grasim Industries, attracted interest from various mutual funds, resulting in an oversubscription. The base issue size of Rs. 2,000 crore was fully subscribed, and the green shoe option to retain up to Rs. 500 crore was exercised.

The tenure of the instrument, i.e., the date of allotment and maturity, is three years, from 24th September 2024 to 24th September 2027. The coupon/interest rate and schedule of payment is set at 8.60% per annum, payable annually, with redemption occurring at the end of the three years.

ABReL, which currently boasts an installed capacity of approximately 1 GW across 42 projects in 10 states, is poised to further strengthen its position in the renewable energy sector. The company has set an ambitious target of reaching 2 GW capacity by the end of the year.

The newly raised funds can be instrumental in achieving this goal by enabling ABReL to invest in new projects, upgrade existing infrastructure, and repay outstanding debt. This strategic move aligns with the Aditya Birla Group’s broader commitment to sustainable development and decarbonization.

The NCDs, which are rated and redeemable, offer a coupon rate of 8.6% per annum and have a maturity period of three years. They will be listed on BSE Ltd. Axis Bank played a pivotal role in arranging the issue.

Aditya Birla Renewables is one of the key enablers for the Group’s manufacturing businesses, including Grasim, Ultratech, Hindalco, and Birla Carbon, in their pursuit of net-zero emissions by 2050.