NASDAQ-listed Indian developer ReNew Energy Global has refinanced its 2024 maturity dollar-denominated bonds with amortizing project debt from an Indian nonbank financial company, becoming the first Indian renewable energy company to do so.
ReNew issued bonds worth US$ 525 million in 2019, which were set to mature in 2024. “By refinancing the dollar-denominated bonds ahead of time, ReNew has shown strong and continued access to domestic debt capital, as well as an ability to proactively manage the refinancing risk,” read a ReNew statement.
This refinancing has cut the bonds’ INR interest cost by 200 basis points, with the interest rate fixed for three years while pushing the maturity to the end of the fiscal year 2027. “The rate reduction, rate fixing, and tenor extension have taken place against the backdrop of a rising interest rate environment in the broader markets. This pre-emptive refinancing mitigates near-term refinancing risk for bonds and provides liquidity to bond investors,” stated ReNew.
ReNew develops, builds, owns, and operates utility-scale wind, solar, and hydropower projects. As of June 14, 2022, it had a gross renewables project portfolio of 12.8 GW across India.
ReNew CFO Kedar Upadhye said, “In today’s business climate, being pro-active and flexible in one’s financing strategy is key, and our team has taken the lead in this by making us the first Indian renewable energy to raise money onshore to retire US dollar bond obligations.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.