State-owned Indian Renewable Energy Development Agency (Ireda) became the first Indian financial institution to raise Green Masala bonds overseas.
Ireda raised $300 million on the London Stock Exchange in a bond offer that was oversubscribed by 1.7 times. The coupon rate was 7.125 per cent, which has been the tightest so far from the initial offer of 7.23 per cent.
“We received bid offers of $500 million. This shows the enthusiasm of investors in the India renewable energy space and the faith in the Indian economy as well,” said I S Popli, chairman & managing director, Ireda.
The bonds would also be listed on the Singapore Stock Exchange. Speaking with Business Standard over the phone, secretary, Ministry of New & Renewable Energy (MNRE), Anand Kumar, said proceeds from the bond would help broaden Ireda’s avenues and also help India realise its target of building clean energy capacity.
“Ireda would now also finance transmission projects which include Green Corridors for evacuation of renewable energy and storage solutions. We are confident that we would be able to raise $150 billion needed to build 175 Gw of renewable energy. MNRE will tap private investors, multi-lateral banks and innovative financial routes to raise money for growth of clean energy in India,” Kumar said.
Ireda had earlier raised Green Masala Bonds worth Rs 700 crore from the domestic market in March this year.
Kumar also said that the ministry would now strengthen the manufacturing base for solar and wind energy. “We are confident that we will achieve the 175 Gw target by 2022. Rather, we can achieve 275 Gw as well. With rapid changes in technology and falling tariffs, renewable is becoming viable for the power distribution companies. MNRE would also try to tap off-shore wind energy also soon,” he said.
Among Indian public sector companies, NTPC has raised overseas Green Masala Bonds worth Rs 2,000 crore at a yield of 7.25 per cent. Read more