ReNew raises $400 million by issuing green bonds

ReNew Energy Global Plc., the parent company of ReNew Power Pvt. Ltd., said India Clean Energy Holdings, a Mauritian entity which is its wholly owned subsidiary, has raised $400 million at 4.5% by issuing senior secured dollar notes.

“The dollar notes are certified green bonds by Climate Bond Initiative and will be listed on the Singapore Exchange (SGX). These Green Bonds have a tenor of 5.25 years. This is the first High Yield issuance out of the ASEAN and South Asian regions in 2022,” the company said in a statement.

Kailash Vaswani, President Corporate Finance, said: “In line with our rapid expansion plans to accelerate India’s energy transition, this issuance goes a long way in helping us meet our robust growth objectives and reduce our cost of capital.”

“We will continue to seek fundraising opportunities to refinance our existing debt with lower-cost fixed rate green bonds,” he said.

These notes were subscribed to by investors from the U.S. and Asia at about 40% each and the balance by EMEA-based investors.

The bulk of notes were subscribed to by long-only fund managers and pension funds. So far the company, through its subsidiaries, has raised in excess of $3.5 billion across eight such issuances, of which seven are outstanding.

The amount raised would be used by ReNew’s subsidiaries to refinance existing high-cost debt and fund capital expenditure in renewable energy assets, the statement said.

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