Proceeds to refinance existing dollar debt and fund growth initiatives
ReNew Energy Global Plc (Nasdaq: RNW) says its wholly-owned subsidiary Diamond II Limited’s US$400 million raised through the issue of senior secured green bonds has received strong support from investors in the US, Europe and Asia as it opened the high-yield issuance out of India after a broad market hiatus of more than a year.
The order book was oversubscribed about 4 times with a total investor demand aggregating in excess of US$1.5 billion, resulting in 35bps tightening of pricing, ReNew said on 20 Apr 2023.
The issuance underlines ReNew’s ability to raise capital as well as assurance to our stakeholders about the company’s strong balance sheet and liquidity position.
The Corporate Style Notes carry a US Dollar coupon rate of 7.95% and have been rated Ba3 by Moody’s and BB- by Fitch.
Proceeds from the issue will be used to refinance existing dollar debt and fund various growth initiatives. The notes have been certified by the Climate Bond Initiative and are aligned with the ICMA Green Bond Principles. The Notes also include a development impact assessment.
ReNew’s President Corporate Finance, Kailash Vaswani, said, “Our green bond issue has opened the India high-yield dollar bond market after more than a year.
“Strong investor demand from global investors underscores the growing demand for renewables and validates our position as an industry leader.
“Raising corporate funds at an expected rate is consistent with our long-term plan and will enable us to accelerate our renewable energy initiatives, reduce our cost of capital, drive innovation and make a positive impact on the environment.”
During FY2023, ReNew has repaid more than US$1 billion to its offshore bondholders. Over the past fiscal year, the company refinanced US$525 million in the domestic markets in addition to the repayment of US$480 Million of debt from internal cash flow generation.
In February, the company made a strategic decision to rebrand itself as ReNew to reflect its transition from being a pure-play renewables company to a decarbonization partner providing end-to-end solutions across the decarbonization spectrum, including clean energy, energy storage and carbon markets.
ReNew has been leveraging digital technologies and proprietary AI to address increasingly complex requirements of customers and users of renewable energy where ReNew is a market leader. fiinews.com
