ReNew Power issues high-yield offshore bond worth Rs $400 mn
POWER & RENEWABLE ENERGY

ReNew Power issues high-yield offshore bond worth Rs $400 mn

According to Kedar Upadhye, group chief financial officer at ReNew Energy, Diamond II Ltd, a division of the company, has appointed Barclays, Deutsche Bank, HSBC, JP Morgan, Standard Chartered Bank, and BNP Paribas as joint worldwide coordinators. The company for alternative energy would now hold roadshows for the bond offering, which would be supported by its corporate guarantee.

The bonds are in compliance with the International Capital Market Association (ICMA) Green Bond Principles, a set of rules that guarantees the bonds are used for environmentally sustainable projects, and have been certified by the Climate Bond Initiative, a non-profit organisation promoting investment in climate change solutions.

An extra security offered by a guaranteed bond is that, in the case of issuer default brought on, for example, by insolvency, interest and principal payments will be made by a third party. Compared to non-guaranteed bonds, this arrangement enables the issuing business to charge lower interest rates. ReNew returned more than $1 billion to its offshore bonds in FY23. Prior to their March 2024 maturity, the Nasdaq-listed company refinanced $525 million in bonds in domestic markets throughout the previous fiscal year. It also repaid $300 million in internal cash accruals.

As of September 30, 2022, ReNew's renewable energy portfolio totaled 13.4 gigawatts (GW) on a gross basis. ReNew's intentions to expand its activities within the renewable energy industry align with the funding strategy. ReNew Power changed its name to ReNew in February to reflect its transformation from a pure-play renewables company to a comprehensive provider of decarbonization solutions for the clean energy, green hydrogen, energy storage, and carbon markets.

The Canadian pension fund became the main shareholder in ReNew last month when the Canada Pension Plan Investment Board (CPPIB) and Goldman Sachs reached an agreement to purchase the latter's shareholding for $268.6 million. The price per share for the transaction was $4.8. As part of its capital recycling strategy, ReNew also intended to sell a small portion of its commercial and industrial projects for roughly $300 million.

See also:
GIP in talks with Apollo Global to buy Adani bonds
Macrotech Developers redeems offshore bonds worth $170 mn


According to Kedar Upadhye, group chief financial officer at ReNew Energy, Diamond II Ltd, a division of the company, has appointed Barclays, Deutsche Bank, HSBC, JP Morgan, Standard Chartered Bank, and BNP Paribas as joint worldwide coordinators. The company for alternative energy would now hold roadshows for the bond offering, which would be supported by its corporate guarantee. The bonds are in compliance with the International Capital Market Association (ICMA) Green Bond Principles, a set of rules that guarantees the bonds are used for environmentally sustainable projects, and have been certified by the Climate Bond Initiative, a non-profit organisation promoting investment in climate change solutions. An extra security offered by a guaranteed bond is that, in the case of issuer default brought on, for example, by insolvency, interest and principal payments will be made by a third party. Compared to non-guaranteed bonds, this arrangement enables the issuing business to charge lower interest rates. ReNew returned more than $1 billion to its offshore bonds in FY23. Prior to their March 2024 maturity, the Nasdaq-listed company refinanced $525 million in bonds in domestic markets throughout the previous fiscal year. It also repaid $300 million in internal cash accruals. As of September 30, 2022, ReNew's renewable energy portfolio totaled 13.4 gigawatts (GW) on a gross basis. ReNew's intentions to expand its activities within the renewable energy industry align with the funding strategy. ReNew Power changed its name to ReNew in February to reflect its transformation from a pure-play renewables company to a comprehensive provider of decarbonization solutions for the clean energy, green hydrogen, energy storage, and carbon markets. The Canadian pension fund became the main shareholder in ReNew last month when the Canada Pension Plan Investment Board (CPPIB) and Goldman Sachs reached an agreement to purchase the latter's shareholding for $268.6 million. The price per share for the transaction was $4.8. As part of its capital recycling strategy, ReNew also intended to sell a small portion of its commercial and industrial projects for roughly $300 million. See also: GIP in talks with Apollo Global to buy Adani bondsMacrotech Developers redeems offshore bonds worth $170 mn

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code