Home / Companies / News /  ReNew raises $460 million through dollar bond issuance

Mumbai: ReNew Power Pvt Ltd, one of India’s largest renewable energy companies, on Tuesday said that it has raised $460 million by issuing bonds to overseas investors to refinance existing offshore bonds raised in 2017.

This is the second time in the last six months that ReNew has tapped the dollar bond market. In October, ReNew raised $325 million selling bonds to foreign investors, in the first dollar bond offering by an Indian renewable energy company since the covid-19 disruption.

The second bond offering witnessed a demand of almost $1.7 billion, Kailash Vaswani, president, corporate finance, ReNew Power, said over the phone.

“We had given an initial pricing guidance of 4.25% and we tightened it by 25 basis points to 4%," he said.

This is the lowest pricing that the company has seen for any of its overseas bond issuances so far, Vaswani said. “The pricing was also lower than some of the other higher rated high-yield bonds from India," he said.

The funds raised through the latest bond issuance will be used to refinance existing offshore debt. “It was a refinance transaction. We had issued masala bonds in 2017. Those bonds were in call period and we decided to call them back. We will be making that payment in the next few days. The transaction has helped us extend the maturity of this liability, which was another one year on the masala bonds, to six years now with these bonds. It will reduce our interest cost by 20%," Vaswani said.

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