IREDA Successfully Raises Rs 1,500 Crore Through Bond Issuance

Indian Renewable Energy Development Agency Ltd was incorporated as a fully owned Govt. of India enterprise under the administrative control of the MNRE. Furthermore, the company was notified as a public financial institution and is also registered as a non-deposit-taking NBFC with the RBI. The company was established for the promotion, development, and commercialization of new and renewable sources of energy and provides financial assistance to energy efficiency and conservation projects.

IREDA Raises Rs.1,500 crore from bond issuance

Indian Renewable Energy Development Agency (IREDA) announced the raising of Rs. 1,500 crore through a bond issuance. This state-run entity structured its bond issuance with a base issue of Rs. 500 crore and an additional green shoe option of Rs. 1,000 crore. According to IREDA’s exchange filing, the issuance was oversubscribed by 2.65 times, reflecting strong investor demand. The funds were raised at an annual interest rate of 7.44% for a tenure of 10 years and two months. This successful fundraising will support IREDA’s initiatives in the renewable energy sector and enhance its financial capabilities.

Market reaction

The stock of IREDA surged by as much as 4% following the company’s announcement of raising Rs. 1,500 crore through a bond issuance. The stock is up by 82% in 2024. The stock currently trades at Rs.190.58 a piece up by 1.62% from its previous day’s closing price.

IREDA CMD on successful Bond Issue

REDA CMD Pradip Kumar Das expressed satisfaction with the overwhelming response to the bond issuance, which was oversubscribed by 2.65 times. “The oversubscription underscores the trust and confidence investors have in IREDA’s vision and its role in driving renewable energy growth in the country,” said Das. This successful capital raising will enable IREDA to strengthen its efforts in financing green energy projects, contributing to India’s goal of achieving 500 GW non-fossil fuel installed capacity by 2030.

Conclusion: IREDA’s Rs.1,500 crore bond issuance, which was oversubscribed by 2.65 times, highlights strong investor confidence in the company’s vision and role in renewable energy. This capital boost will significantly support IREDA’s efforts to finance green energy projects, aiding India’s goal of 500 GW of non-fossil fuel capacity by 2030.

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