IREDA raises Rs 1,500 cr as its bond issue oversubscribed by 2.65 times
Jun 22, 2024
New Delhi [India], 22 June : The Indian Renewable Energy Development Agency (IREDA) on Friday said that it has successfully raised Rs 1,500 crore through the bond issuance.
According to a press release, the bond issuance, which included a base issue of Rs 500 crore and a Green shoe option of Rs 1,000 crore, garnered an overwhelming response from investors, resulting in an oversubscription by 2.65 times.
The funds were secured at an annual interest rate of 7.44 per cent for a tenure of 10 years and 2 months, reflecting strong market confidence in IREDA's financial stability and its pivotal role in promoting green energy initiatives, the release said.
Pradip Kumar Das, Chairman and Managing Director of IREDA, expressed his satisfaction with the outcome, highlighting the critical role of the bond issuance in supporting India's renewable energy ambitions.
Das said, "We are happy with the overwhelming response to our bond issuance. The oversubscription by 2.65 times underscores the trust and confidence that investors have in IREDA's vision and its crucial role in driving renewable energy growth in the country."
He added, "This successful capital raising will enable us to further strengthen our efforts in financing green energy projects, contributing to India's goal of achieving 500 GW non-fossil fuel installed capacity target by 2030."
The substantial funds raised through this bond issuance will significantly enhance IREDA's capacity to finance various green energy projects across India.
This financial boost is crucial for the agency as it continues to play a leading role in supporting the country's transition to sustainable energy sources.
The successful bond issuance aligns with India's broader energy goals, particularly the ambitious target of achieving 500 GW of non-fossil fuel installed capacity by 2030.
By securing the necessary capital, IREDA is well-positioned to advance its mission of facilitating the development and deployment of renewable energy projects nationwide.
