IREDA Issues First-Ever Perpetual Bonds Worth ₹1,247 Crore and Secures ₹24.48 Crore Tax Refund

The Indian Renewable Energy Development Agency Limited (IREDA) has made a significant financial move by launching its first-ever issuance of Perpetual Bonds worth ₹1,247 crore, offering an annual coupon rate of 8.40%. This initiative is aimed at optimising the company’s capital structure and reinforcing its financial position to support India’s expanding renewable energy sector.

Why Perpetual Bonds?

Perpetual bonds, often referred to as “perps”, have no maturity date, meaning they provide long-term capital without requiring repayment of the principal. This issuance will boost IREDA’s Tier-I capital, ensuring financial stability and an enhanced capacity to fund clean energy projects. The decision aligns with the organisation’s broader strategy to scale up green energy investments amid favourable market conditions.

Tax Refund of ₹24.48 Crore: Financial Relief for IREDA

In addition to its bond issuance, IREDA has received a tax refund of ₹24.48 crore from the Income Tax Department. The refund pertains to partial relief granted by the Commissioner of Income Tax (Appeals) for Assessment Year (AY) 2011-12, following disputes related to disallowances.

Furthermore, the company is anticipating an additional refund of approximately ₹195 crore for similar cases spanning Assessment Years 2010-11, 2012-13, 2013-14, and 2015-16 to 2018-19. The pending refunds, once received, will provide further financial flexibility to the organisation.

IREDA’s Vision for India’s Renewable Energy Sector

IREDA’s Chairman and Managing Director, Shri Pradip Kumar Das, described this move as a historic milestone. He said “This is a historic milestone for IREDA. We extend our gratitude to investors for their enthusiastic response. Strengthening our capital base through Perpetual Bonds will enable us to scale up financing for renewable energy projects, accelerating India’s transition to a cleaner and more sustainable future.” 

Conclusion

The issuance of perpetual bonds and the tax refund marks a pivotal moment for IREDA, ensuring long-term financial strength while reinforcing its commitment to green energy development. With capital optimisation and an expanding funding base, IREDA is poised to play a crucial role in India’s renewable energy transition.

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