The government-owned non-banking financial company recently announced their successful generation of a multi-million dollar fund to support India’s RE growth.
The Indian Renewable Energy Development Agency (IREDA) revealed on Friday that it has effectively secured Rs 1,500 crore (equivalent to about 20 million dollars) by issuing bonds for investors to back renewable energy projects in India.
Initially, Rs 500 crore was offered in the bond, with an additional Rs 1,000 crore available through a Green Shoe option due to high investor demand. The issuance attracted 2.65 times more subscriptions than available bonds. Investors were offered a competitive annual interest rate of 7.44% for a tenure of 10 years and two months.
In the official statement, IREDA CMD Pradip Kumar Das emphasised that the successful capital raise the agency aims to achieve will bolster its capacity to finance more green energy projects, aligning with India’s target of achieving 500 GW of non-fossil fuel installed capacity by 2030.
He also expressed satisfaction with the investor’s response to their bond issuance. He noted that the ‘overwhelming’ subscription highlights the trust and confidence investors have in IREDA’s vision and its role in advancing renewable energy growth in India.
Last month, IREDA revealed its goal to conduct a follow-on public offer (FPO) within this fiscal year to fulfil its capital needs and support lending to green energy projects. The company targets scheduling the FPO for the second half of the current financial year or the first half of FY26.
Besides, the company has recently established a wholly owned subsidiary, IREDA Global Green Energy Finance IFSC, at the International Financial Services Centre (IFSC) in GIFT City, Gujarat. This entity will be an offshore platform to secure cost-effective funding and reduce hedging expenses.
IREDA is regarded as a non-banking financial company (NBFC). The institution’s equity stands at approximately Rs 8,559.43 crore ($11.41M), with a loan portfolio of around ₹59,698 crore ($79.6M). Its disbursements totalled about Rs 25,089 crore in FY24, an increase from ₹21,639 crore in FY23, Rs 16,071 crore in FY22, and Rs 11,000 crore in FY21.
