ReNew Energy Global (ReNew) on Thursday said that its wholly-owned subsidiary, Diamond II, has raised $400 million through the issue of senior secured green bonds.
The green bonds received strong demand from investors in US, Europe and Asia as it opened the high-yield issuance out of India after a broad market hiatus of more than a year, the Nasdaq-listed company said.
The order book was oversubscribed about four times with a total investor demand aggregating in excess of $1.5 billion, resulting in 35 basis points (bps) tightening of pricing, it added.
“The corporate style notes carry a US Dollar coupon rate of 7.95 per cent and have been rated Ba3 by Moody’s and BB- by Fitch. Proceeds from the issue will be used to refinance existing dollar debt and fund various growth initiatives. The notes have been certified by the Climate Bond Initiative and are aligned with the ICMA Green Bond Principles. The notes also include a development impact assessment,” the company said.
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ReNew’s President, Corporate Finance, Kailash Vaswani said, “Our green bond issue has opened the Indian high-yield dollar bond market after more than a year. Strong investor demand from global investors underscores the growing demand for renewables and validates our position as an industry leader.”
Raising corporate funds at an expected rate is consistent with ReNew’s long-term plan and will enable the company to accelerate its renewable energy initiatives, reduce cost of capital, drive innovation and make a positive impact on the environment, he added.
During FY23, ReNew has repaid more than $1 billion to its offshore bondholders. Over the past fiscal year, the company refinanced $525 million in the domestic markets in addition to the repayment of $480 million of debt from internal cash flow generation.
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In February, the company made a strategic decision to rebrand itself as ReNew to reflect its transition from being a pure-play renewables company to a decarbonization partner providing end-to-end solutions across the decarbonisation spectrum, including clean energy, energy storage and carbon markets.
ReNew has been leveraging digital technologies and proprietary AI to address increasingly complex requirements of customers and users of renewable energy where ReNew is a market leader. Its clean energy portfolio stands at around 13.4 gigawatts (GW) on a gross basis as of September 30, 2022.