ReNew Power raises $585 mn through dollar green bonds
Indian renewable energy firm ReNew Power has raised $585 million through its latest dollar bond offering.
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.