ReNew Power Concludes $375 Mn Green Bond Issue

The capital raised through the green bond issue will be utilised for refinancing of outstanding external commercial borrowings and as Capex in eligible green projects.

ReNew Power Limited, one of India’s largest renewable energy Independent Power Producer (IPP) has successfully concluded a green bond issue of US$ 375 million. The five-year non-call two notes were offered at a yield of 6.67% per annum. The bond offering has been rated as BB by Fitch Ratings.

The capital raised through the green bond issue will be utilised for refinancing of outstanding external commercial borrowings and as Capex in eligible green projects. Barclays (B&D), Goldman Sachs, HSBC, J.P. Morgan, and YES Bank were the book runners for the green bond issue. The USD denominated bonds received an excellent response and were fully subscribed by leading fund managers/asset managers, banks and pension/life funds from across the US, Europe, and Asia. The issue was opened for subscription on March 05, 2019, and closed on the same day.

Speaking about the offer, Sumant Sinha, Chairman and Managing Director, ReNew Power Limited said, “The renewables market in India is firmly established and is growing rapidly. ReNew Power is India’s largest IPP with more than 7000 MW of commissioned and under construction wind and solar projects. Our history of financial prudence, investing in high-quality assets and creating value for all our stakeholders has enabled us to regularly raise funds to fuel our rapid growth. We are happy that our bond offering received such an enthusiastic response, especially when the renewables sector is facing challenges in raising capital.”

Commenting on the issue, Kailash Vaswani, Deputy CFO, ReNew Power Limited said, “The Bond issue was in line with our strategy of diversifying debt sources. The issuance enabled us to fix our interest rate risk and achieve lower pricing than existing borrowing costs. The international bond investors have seen us deliver on committed performance and hence have come forward to invest in our new issuance.”

In February, Fitch Ratings has assigned an expected rating of ‘BB (EXP)’ to the proposed US dollar fundraising of ReNew RG II, which is a restricted group of subsidiaries owned by ReNew Power Ltd. 

“The rating of the proposed notes reflects the credit profile of the restricted group of eight entities with an operating capacity of 636 MW in solar (56 percent) and wind (44 percent) power generation in India. The proposed US dollar notes represent joint and several obligations of the eight operating entities,” Fitch Ratings said in a statement.