ReNew refinanced 2024 maturity dollar-denominated bonds

Duke Energy Renewables

ReNew Energy Global, India’s leading renewable energy company, has refinanced its 2024 maturity dollar-denominated bonds with amortising project debt from an Indian nonbank financial company.

ReNew issued bonds (RPVIN 6.67 percent 24s or Bonds) worth $525 million in 2019, which were set to mature in 2024. By refinancing the dollar-denominated bonds ahead of time, ReNew has shown strong and continued access to domestic debt capital, as well as an ability to proactively manage refinancing risk.

This refinancing has cut the bonds’ INR interest cost by 200 basis points, with the interest rate fixed for three years while pushing out the maturity to the end of fiscal year 2027. The rate reduction, rate fixing, and tenor extension have taken place against the backdrop of a rising interest rate environment in the broader markets.

ReNew CFO Kedar Upadhye said: “In today’s business climate, being pro-active and flexible in one’s financing strategy is key, and our team has taken the lead in this by making us the first Indian renewable energy to raise money onshore to retire US dollar bond obligations.”

ReNew is in the process of expanding its capacity, with its gross total portfolio recently surging over 25  percent to ~12.8 GW from 10.2 GW at the beginning of 2022.