ReNew Power raises $352 million to repay loans

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One of the leading Indian renewable energy firms, ReNew Power Ventures Pvt. Ltd, based in Gurgaon, has raised INR 22.35 billion ($352 million) through two Non-Convertible Debentures (NCD). The funds will be used to repay its existing business loans and business expansion, the Times of India has reported.

The NCD issue has two parts: (i) a credit enhanced NCD worth INR 7.6 billion (~$114 million) for a period of 17 years; and (ii) a multi-issuer cross collateral Rupee bond. The bond involves multiple power distribution companies (DISCOMs) valued at INR 14.75 billion (~$222 million).

L&T Financial Services has acted as underwriter for the bond, which involves power DISCOMs from Andhra Pradesh, Rajasthan and Gujarat; and is spread across eight special purpose vehicles (SPV) and 12 projects. This totals around 234 MW of installed capacity (174 MW of wind and 60 MW of solar).

Kailash Vaswani, Deputy CFO, ReNew Power, said,” We continue to broad base our sources of debt and this NCD issue has saved interest cost between 1.5 and 2 percent. This is expected to help in freeing existing bank limits and allowed us to contribute to working towards renewable energy targets set by states and center.”

The India Infrastructure Finance Company Ltd (IIFCL) and Indian Renewable Energy Development Agency (IREDA) have together extended the partial credit guarantee.

ReNew Power has been very active in the Indian solar market. Most recently, it is considering purchasing a 3.5 GW solar and wind portfolio from Waaree Energies and has raised equity totaling $900 million from several foreign investors.

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