Synopsis
On March 28, IREDA announced a significant agreement for a 26 billion Japanese Yen loan from SBI's Tokyo branch, which includes a greenshoe option. This move aims to strengthen IREDA's position in the global market and support India's renewable energy sector.Key Takeaways
- IREDA has signed a loan agreement of 26 billion Japanese Yen.
- The facility includes a greenshoe option of 10 billion Japanese Yen.
- The loan has a term of five years with bullet payment at maturity.
- IREDA's net profit increased by 26.8% in the latest quarter.
- The company maintains a strong credit rating of ‘BBB-’ long-term.
New Delhi, March 28 (NationPress) The Indian Renewable Energy Development Agency Limited (IREDA) revealed on Friday that it has secured a loan agreement of 26 billion Japanese Yen from SBI’s Tokyo branch, which features a greenshoe option of 10 billion Japanese Yen.
This five-year unsecured loan, which entails a bullet payment upon maturity, is expected to bolster IREDA’s global market footprint, as noted in a stock exchange disclosure by the country’s leading pure-play green financing non-banking financial company (NBFC).
After hedging, the total cost is projected to fall below 7 percent for the External Commercial Borrowing, rendering it more economical compared to loans of similar duration in the domestic sector, as stated by IREDA.
In his remarks regarding the agreement, Pradip Kumar Das, Chairman and Managing Director of IREDA, stated, “This facility allows us to diversify our resource base and optimize costs, thereby enhancing our lending capabilities to support India’s renewable energy industry. This transaction reflects robust investor confidence in IREDA’s financial stability and growth prospects.”
IREDA maintains an international credit rating of ‘BBB-’ for long-term and ‘A-3’ for short-term, with an Outlook of ‘Stable’ as per S&P Global, highlighting its exceptional corporate governance and credibility in global markets.
In its latest financial report, IREDA noted a 26.8 percent increase in net profit, reaching Rs 425.37 crore for the October-December quarter of the current fiscal year, compared to Rs 335.54 crore during the same period last year.
The government-backed NBFC recorded a revenue of Rs 1,698.99 crore in the third quarter, marking a 35.57 percent rise from Rs 1,253.20 crore in Q3 FY 2023-24.
In Q3, IREDA’s loan approvals surged by 45.01 percent to Rs 13,226.81 crore as opposed to Rs 9,121.11 crore in the same quarter of the previous year, while loan disbursements reached Rs 7,448.96 crore, reflecting a 25.27 percent increase from Rs 5,946.45 crore.
IREDA’s total loan portfolio has expanded to an impressive Rs 68,959.61 crore, up 36.34 percent from Rs 50,579.67 crore in Q3 FY 2023-24. The company’s net worth has also grown to Rs 9,842.07 crore, a 20.99 percent increase from Rs 8,134.56 crore in Q3 FY 2023-24. Its earnings per share (EPS) improved to Rs 1.58, up 15.03 percent from Rs 1.38 in the same quarter of the prior fiscal year.
