Bombay:ReNew Power has raised $ 400 million from global debt investors, making it the country’s second issue after Reliance Industries’ $ 4 billion sweep.
The renewable energy company said the money was raised by Clean Energy Holdings, a wholly-owned subsidiary of Renew Energy Global Plc, which is the parent company of operating company ReNew Power.
He offered a 4.5% coupon on the US $ 400 million senior secured 5.25 year notes.
The money will be used to refinance existing high-cost debt and fund capital spending, among other uses, the Nasdaq-listed Gurugram-based company said.
The dollar notes are Green Bond certified by the Climate Bond Initiative and will be listed on the Singapore Stock Exchange. These green bonds have a term of 5.25 years and are the first high yielding issue from the ASEAN and South Asian regions in the new year.
The issue has been underwritten 40 percent each by US and Asian investors and the remainder by investors based in EMEA (Europe, Middle East and Africa) and most of the underwriters are long-term fund managers and pension funds.
So far, ReNew Power has raised more than $ 3.5 billion from eight issues, seven of which are ongoing, he said.
ReNew Power (Corporate Finance) chairman Kailash Vaswani said the money would be used to refinance existing high-cost debt and finance the capital expenditures of its subsidiaries and for other corporate purposes.
The company is one of the largest independent renewable energy producers that develop, build, own and operate large-scale wind and solar energy projects, hydroelectric projects and distributed solar energy projects.
As of November 2021, its total capacity stood at 10.3 gigawatts (GW), including projects ordered and committed.
On January 6, Reliance had raised $ 4 billion in foreign currency bond issues, which is the country’s largest so far to repay existing debt.
The show was “nearly three times oversubscribed with a peak order book totaling around $ 11.5 billion,” the retail oil giant said.
He added that it was the largest foreign exchange bond transaction the country has ever completed, eclipsing the CGSB Videsh bond issue worth $ 2.2 billion in 2014.
Reliance has a cash balance of Rs 2.59 lakh crore and a gross debt of Rs 2.55 lakh crore as of September 2021.