Ireda's Bond Issue Oversubscribed by 2.65 Times, Raises Rs 1,500 Crore

State-owned Indian Renewable Energy Development Agency (Ireda) on Friday said it has raised Rs 1,500 crore through a bond issue, which was oversubscribed by 2.65  times. 

The bond issuance, which consisted of a base issue of Rs 500 crore and a green shoe option of Rs 1,000 crore, received an overwhelming response from investors, and oversubscribed 2.65 times, a company statement said. 

According to the statement, Ireda successfully raised Rs 1,500 crore on Friday through the issuance of bonds. 

Funds have been raised at an annual interest rate of 7.44 per cent for a tenure of 10 years and 2 months.

Ireda Chairman & Managing Director Pradip Kumar Das said, "...The oversubscription by 2.65 times underscores the trust and confidence that investors have in Ireda's vision and its crucial role in driving the renewable energy growth in the country".

"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."

Last month the company also stated that it is mulling follow-on public offer (FPO) as well as perpetual debt to meet its future capital requirements and onward lending for renewables.

The Rs 2,150 crore initial public offering (IPO) was oversubscribed about 39 times in November 2023.

Addressing a media round table discussion, IREDA Chairman and Managing Director Pradip Kumar Das had said that the company is planning an FPO as well as perpetual debt for meeting future capital requirements of the company and onward lending mainly for renewable energy projects.