ReNew Raises $400 Million Through Issuance of Green Bonds, Sees Strong Demand From Global Investors
21 April 2023 - 1:44AM
Business Wire
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
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.
For more information, visit renew.com and follow us on LinkedIn,
Facebook, Twitter and Instagram.
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version on businesswire.com: https://www.businesswire.com/news/home/20230420005696/en/
Press Enquiries ReNew | Shilpa Narani |
shilpa.narani@renew.com Investor Enquiries ReNew | Nathan
Judge, Nitin Vaid | ir@renew.com
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