IREDA Unveils Its First Perpetual Bond to Secure ₹1,247 Crore
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Synopsis
IREDA, the state-owned renewable energy financier, has launched its first-ever perpetual bond to raise ₹1,247 crore at an 8.4% annual coupon rate. This move aims to enhance its capital structure while accelerating the financing of renewable energy projects in India.
Key Takeaways
- IREDA launches its first perpetual bond.
- Target raise: ₹1,247 crore.
- Annual coupon rate set at 8.4%.
- Increased borrowing limit for FY 2024-25.
- Tax refund of ₹24.48 crore received.
New Delhi, March 20 (NationPress) The Indian Renewable Energy Development Agency (IREDA), a state-owned financier focused on renewable energy, has officially launched its inaugural perpetual bond aimed at raising ₹1,247 crore.
As per a filing with the stock exchange, these bonds are being issued with an annual coupon rate of 8.4 percent.
IREDA described this move as a pivotal measure to enhance its capital structure while leveraging favorable market conditions.
According to IREDA, “This groundbreaking initiative represents a significant advancement in optimizing the company's capital framework while capitalizing on the current supportive market circumstances.”
Pradip Kumar Das, Chairman and Managing Director of IREDA, underscored the significance of this initiative, stating, “Bolstering the company's capital base through perpetual bonds will facilitate increased financing for renewable energy projects.”
“This strategy will ultimately expedite India’s transition towards a cleaner and more sustainable future,” he added.
The introduction of these perpetual bonds follows the decision made by IREDA's board to elevate its borrowing limit for the fiscal year 2024-25.
The borrowing cap has been raised from ₹24,200 crore to ₹29,200 crore.
Funds will be acquired through a variety of financial instruments, including taxable bonds, perpetual debt instruments, bank loans, international credit lines, external commercial borrowings, and short-term loans.
In conjunction with the bond issuance, IREDA also revealed that it received a tax refund of ₹24.48 crore from the Income Tax Department on March 19.
This refund pertains to a partial relief granted by the Commissioner of Income Tax (Appeals) for the assessment year 2011-12.
The agency mentioned that it is still expecting nearly ₹195 crore in tax refunds for various assessment years, including 2010-11, 2012-13, 2013-14, and from 2015-16 to 2018-19.
This announcement caused a slight uptick in the company's stock during early trading on March 20. However, the gains were fleeting, with shares later trading flat at ₹150.23.
