ReNew Energy Global (ReNew), a Nasdaq-listed Indian clean energy company, announced this week that its wholly-owned subsidiary Diamond II Ltd has raised $400 million by issuing senior secured green bonds.
The company said the green bonds received strong demand from investors in US, Europe, and Asia. The order book was oversubscribed about four times with a total investor demand aggregating more than $1.5 billion, resulting in a 35bps tightening of pricing.
The Corporate Style Notes carry a US Dollar coupon rate of 7.95% 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.
ReNew’s President-Corporate Finance, Kailash Vaswani, said: “Raising corporate funds at an expected rate consistent with our long-term plan will enable us to accelerate our renewable energy initiatives, reduce our cost of capital, drive innovation, and make a positive impact on the environment.”
During FY2023, ReNew 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.
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 decarbonization spectrum, including clean energy, energy storage, and carbon markets. The company had a cumulative clean energy portfolio of 13.4 GW as of September 30, 2022.
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