ReNew plans $500 million dollar-bond issue to refinance upcoming debt maturities

MUMBAI: ReNew Energy Global PLC (REGP) is preparing to tap global debt markets with plans to raise over $500 million through dollar-denominated bonds to refinance a large portion of its upcoming maturities, according to two people aware of the matter.

The move comes as the Gurugram-based renewable energy company faces over $1.5 billion in cumulative debt maturities over the next 12 months across various borrowing lines, as per a 21 November Fitch Ratings note. This includes $525 million notes issued by REGP’s Mauritius-based subsidiary Diamond II, which mature in July 2026. The company has about $800 million of cash and equivalents.

HSBC has been mandated as merchant banker for the proposed bond issue, the people said, requesting anonymity as discussions are private. The dollar bond is likely to be launched in January 2026.

Queries emailed to ReNew and HSBC on Monday did not elicit a response till press time.

Fitch analysts noted that while ReNew is likely to generate negative free cash flow in the near to medium term because of its ongoing capacity expansion, this would be mitigated by the company’s policy of funding the equity portion of its capex through a mix of capital recycling, internal accruals, and its “adequate access to onshore and offshore debt markets.”

The rating agency expects ReNew’s capex to average ₹7,500 crore a year between FY26 and FY28, compared to ₹9,400 crore in FY25.

Its capex intensity—the ratio of long-term asset investment to revenue—is projected to fall below 50% in FY26 and remain at that level, down sharply from 95% in FY25, analysts at Fitch noted. ReNew’s net debt-to-Ebitda ratio is also expected to drop below 7x in the medium term, from 8.5x in FY25.

The Fitch note attributed the easing capex intensity partly to the commissioning of several large projects in recent quarters and a slowdown in new additions due to constraints in national grid expansion.

Portfolio scale

Nasdaq-listed ReNew, with 11.6 GW of operational assets, is India’s second-largest renewable energy producer after Adani Green Energy Ltd, which has 16.7 GW in operation. ReNew’s solar, wind and hybrid plants account for about 6% of the country’s installed solar and wind capacity. The company also has 150 MWh of battery energy storage in operation, while another 6.9 GW of renewable assets and 950 MWh of battery storage are under development, according to its latest earnings release.

The Gurugram-based firm has also expanded into solar manufacturing. It operates 6.5 GW solar module and 2.5 GW solar cell manufacturing facilities, and is building an additional 4 GW solar cell plant. In May, ReNew raised $100 million from British International Investment (BII) to fund construction of this Dholera, Gujarat facility.

“REGP's large and diversified operating renewable portfolio of 11.6 GW provides economies of scale and operating advantages, mitigating concentration risk,” Fitch noted. “Its projects, including those under construction, are diversified by source and geography, reducing risks from adverse climatic conditions.”

Fitch has assigned a BB- rating with a stable outlook to REGP and its Indian unit, ReNew Private Ltd, three notches below both investment grade and India’s sovereign rating of BBB-.

ReNew’s rating is comparable with peers: Greenko Energy Holdings is rated BB with a negative outlook, while Continuum Green Energy Holdings Ltd is rated B+ with a stable outlook.