Vaswani adapts proactive-flexible financing strategy in today’s business environment
ReNew Energy Global plc (Nasdaq: RNW, RNWWW) is refinancing Non-Convertible Debentures (NCDs) worth Rs.23,910 million that were issued by its subsidiaries in October 2020.
These NCDs were issued to India Green Energy Holdings, a Mauritius based SPV, which had raised US$325 million through senior secured bonds (USD Bonds). The USD bonds, issued at a coupon of 5.375%, are scheduled to mature in April 2024.
The refinancing is done using proceeds of a long-term amortising project loan, obtained from a leading non-banking financial company (NBFC). India Green Energy has consequently redeemed the USD bonds three months ahead of maturity.
This refinancing comes at an interest cost of less than 9% and would reduce the overall borrowing cost on this debt pool by more than 200 basis points. The move will term out maturity beyond 15 years through structured amortisations.
Commenting on this, ReNew Group CFO Kailash Vaswani said, “Adapting a proactive and flexible financing strategy is crucial in today’s business environment. We will continue to look at multiple pools of capital to further reduce our borrowing costs, extend maturities on existing debt and reduce refinancing risk without depleting the company’s growth capital.”
By refinancing and redeeming NCDs and USD bonds ahead of time, ReNew has demonstrated strong and continued access to domestic debt markets, which remain liquid, while reaffirming its ability to proactively manage dollar refinancing risks. Fiinews.com
