ReNew Power Successfully Prices USD 585 Million of Green Bonds

ReNew Power has announced the successful pricing of USD 585 million of 4.5 percent US dollar-denominated senior secured “green bonds”

ReNew Power Private Limited, one of India’s leading renewable energy company, has announced the successful pricing of USD 585 million of 4.5 percent US dollar-denominated senior secured “green bonds” due 2028 on March 31, 2021, to be issued by certain of its subsidiaries. 

The Company plans to utilise the proceeds to, among others, repay outstanding debt. The bonds have a tenor of 7.25 years and a fixed interest rate of 4.5 percent per annum. In-principle approval has been obtained for the listing and trading of the bonds on the India International Exchange (IFSC) Limited (the India INX).

ReNew Power a leading renewable energy independent power producer (IPP) by capacity and is the 13th largest global renewable IPP by operational capacity. It develops, builds, owns and operates utility-scale wind energy projects, utility-scale solar energy projects, utility-scale firm power projects and distributed solar energy projects. As of December 31, 2020, the firm had a total capacity of close to 10 GW of wind and solar energy projects across India, including commissioned and committed projects.

ReNew Power’s current group of stockholders contains several marquee investors including Goldman Sachs, CPP Investments, Abu Dhabi Investment Authority, GEF SACEF and JERA.

In February, the firm had started the process to achieve a listing at the NASDAQ market in the US via the SPAC (Special Purpose Acquisition Company) route. The SPAC in this case is RMG Acquisition Corporation II. According to the official announcement, the pro forma consolidated & fully diluted enterprise value of the transaction is approximately USD 8 billion and it is expected to close in the second quarter of 2021, subject to customary closing conditions.

More recently, the firm had announced the commissioning of a 300 megawatt (MW) wind power generation facility in Gujarat. The project was previously awarded to ReNew’s operating subsidiary ReNew Wind Energy (AP2) Private Limited in a competitive E-reverse auction conducted by the Solar Energy Corporation of India (SECI).

In January 2020, the firm had priced USD 450 million worth of green bonds. With 7 years of maturity, these dollar bonds were priced at 5.875 percent coupon rate and issued in 2 tranches with an average maturity tenure of five-and-a-half years.