ReNew Energy Global Plc, one of India’s top renewable energy companies, on Friday said that India Clean Energy Holdings, a Mauritian entity, and a wholly owned subsidiary of ReNew has raised $400 million at 4.5% by issuing senior secured dollar notes in the international market, the company said in a statement.
ReNew is the most active international bond issuer from India, having so far raised $3.5 billion across eight such issuances.
The dollar notes are certified green bonds by Climate Bond Initiative and will be listed on the Singapore Exchange (SGX). These green bonds have a tenor of 5.25 years. This is the first high yield issuance out of the ASEAN and South Asian regions in 2022, the company. Bonds with a rating of below investment grade are known as high yield.
These notes were subscribed to by investors from the US and Asia at about 40% each and the balance by EMEA-based investors. The bulk of notes were subscribed to by long-only fund managers and pension funds.
The amount raised would be used by ReNew’s subsidiaries to refinance existing high-cost debt and fund capital expenditure in renewable energy assets or for other purposes as permitted by law
President Corporate Finance, Mr. Kailash Vaswani, said: “In line with our rapid expansion plans to accelerate India’s energy transition, this issuance goes a long way in helping us meet our robust growth objectives and reduce our cost of capital. We will continue to seek fundraising opportunities to refinance our existing debt with lower-cost fixed rate green bonds.”
ReNew develops, builds, owns, and operates utility-scale wind and solar energy projects, hydro projects and distributed solar energy projects. As of November 30, 2021, ReNew had a total capacity of approximately 10.3 GW of renewable energy projects across India including commissioned and committed projects.