ReNew Power raises $585 mn through dollar green bonds
The proceeds will be used by ReNew to refinance its debt of around 803 MW of operating wind and solar assets. The bonds have a tenor of 7.25 years and a fixed interest rate of 4.5% per annum. In principle approval has been obtained to list and trade the bonds on the India International Exchange (IFSC) Ltd (India INX).
Earlier, ReNew had raised around $325 million through overseas green bonds. The company offered its overseas green bonds at a 5.37% rate, with a maturity period of three and a half years. ReNew intends to utilise the proceeds to expand its capacity and to refinance high-cost local debt. It is expected to use around $225 million to repay its local debt.
In early 2020, it raised $450 million through a dollar bond issuance. The bonds were offered at a coupon rate of 5.87% with an average maturity of five and a half years. The company intended to utilise the proceeds worth nearly $65 million to meet its future capital expenditure requirements.
As we have reported earlier, in February this year, ReNew had signed an agreement for a business combination with RMG Acquisition Corporation II, a special purpose acquisition company (SPAC), resulting in the company becoming public.
Also read: ReNew Power listed in WEF’s Global Lighthouse Network
Also read: ReNew Power eyes merger with SPACs for US listing