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ReNew Raises $400 Million Through Issuance of Green Bonds, Sees Strong Demand From Global Investors
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
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Rhea-AI Summary
ReNew Energy Global Plc has successfully raised $400 million through its wholly-owned subsidiary Diamond II Limited by issuing senior secured green bonds. The issuance marks the reopening of India's high-yield market after over a year, with the order book oversubscribed about 4 times, attracting more than $1.5 billion in demand, resulting in a 35bps tightening of pricing. The bonds carry a coupon rate of 7.95 percent and have been rated Ba3 by Moody's and BB- by Fitch. Proceeds will refinance existing debt and support various growth initiatives. ReNew has repaid over $1 billion to offshore bondholders during FY2023 and aims to further enhance its position as a leader in the renewable energy sector.
Positive
Successful issuance of $400 million in green bonds demonstrates strong capital-raising capability.
Oversubscription of 4 times indicates high investor confidence in the company.
Proceeds will refinance existing debt and support growth initiatives, enhancing financial stability.
Negative
None.
Order book oversubscribed about 4 times resulting in 35bps tightening of pricing and marking the end of a year-long hiatus for India high-yield new issuances
GURUGRAM, India--(BUSINESS WIRE)--
ReNew Energy Global Plc (“ReNew” or “the Company”) (Nasdaq: RNW, RNWWW), India’s leading clean energy company (in terms of total commissioned capacity), said on Thursday that its wholly-owned subsidiary, Diamond II Limited, has raised $400 million through the issue of senior secured green bonds.
The green bonds received strong demand from investors in 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 $1.5 billion, resulting in 35bps tightening of pricing. 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 percent 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 $1 billion to its offshore bondholders. Over the past fiscal year, the company refinanced $525 million in the domestic markets in addition to the repayment of $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.
