ReNew Energy Global 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 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.
“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,” Kailash Vaswani, ReNew’s President Corporate Finance, said.
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.