IREDA Expands Horizon Woth International Credit Rating from S&P

IREDA Crosses Highest Annual Loan & Sanction Loan Disbursement for Renewable Energy Projects

Indian Renewable Energy Development Agency Limited (IREDA) has secured its international credit rating from S&P Global Ratings Limited. The Indian lender has been assigned ‘BBB-‘ long-term and ‘A-3’ short-term issuer credit ratings to IREDA, with Outlook ‘Stable’.

This rating will enable IREDA to expand its reach in the international market, tapping into attractive sources of funding and supporting its borrowing plan. In the rating update released by S&P Global , the agency stated, “We rate IREDA one notch above our starting point for rating finance companies (fincos) in India to reflect ongoing government support.”

Pradip Kumar Das, Chairman & Managing Director, IREDA, expressed happiness on the achievement, stating, “The international credit rating assigned to IREDA is a testament to our commitment to upholding the highest standards of corporate governance and maintaining the trust of our investors and stakeholders. This rating will support our efforts to secure funds at competitive rates and enhance our footprint in global markets. We remain focused on maintaining our strong market position, robust financial performance, and exemplary corporate governance to drive sustainable development.”

The move comes at the same time that the IREDA board also gave its approval for raising equity capital of up to Rs 4,500 crore.

The funds will be raised in one or more tranches through methods including Further Public Offer (FPO), Qualified Institutional Placement (QIP), Rights Issue, Preferential Issue, or other permitted modes, the green financing NBFC said.

The MNRE backed NBFC reported a 30 percent YoY growth in its net profit to Rs 383.69 crore for the quarter ended June 30, 2024. Its revenue from operations jumped 32 percent YoY to Rs 1.502 crore in the quarter. The NBFC’s asset quality also improved.