Mumbai: ReNew Energy Pvt Ltd, one in all India’s largest renewable power firms, on Tuesday mentioned that it has raised $460 million by issuing bonds to abroad traders to refinance current offshore bonds raised in 2017.
That is the second time ReNew has tapped the greenback bond market within the final six months. In October, ReNew raised $325 million promoting bonds to overseas traders, within the first greenback bond providing by an Indian renewable power firm because the covid-19 disruption.
The bond providing witnessed a requirement of just about $1.7 billion, Kailash Vaswani, president, company finance, ReNew Energy mentioned in a telephonic interplay.
“We had given an preliminary pricing steerage of 4.25% and we tightened it by 25 foundation factors to 4%,” he mentioned.
Vaswani added that that is the bottom pricing that firm has seen for any of its abroad bond issuances thus far. “The pricing was additionally decrease than among the different greater rated high-yield bonds from India,” he added.
The funds raised by means of the most recent bond issuance shall be used to refinance current offshore debt.
“It was a refinance transaction. We had issued masala bonds in 2017, these bonds have been in name interval and we determined to name them again. We shall be making that fee within the subsequent few days. The transaction has helped us prolong the maturity of this legal responsibility, which was one other one yr on the masala bonds, to 6 years now with these bonds. It’ll scale back our curiosity value by 20%,” mentioned Vaswani.
“Given the market situations we felt that this was a good time to take a look at a refinance transaction. There’s a robust urge for food for paper that matches the ESG or clear power mandate,” he mentioned.
Many Indian firms have been tapping the greenback bond market because the begin of the yr pushed by low rates of interest abroad in addition to the necessity to diversify their sources of capital. Mint reported on 4 February that Indian firms have raised round $3.3 billion by means of abroad bond gross sales thus far this yr.
“Having completely different swimming pools of capital is important for us. Final yr because of covid, our bond yields had gone as much as round 8% and the bond markets have been just about shut for 3-6 months. In that interval we raised debt capital from multilateral companies, home banks and nbfcs. So it’s important to hold your choices open to make sure that you’ve got entry to diversified sources of capital, which then stands the take a look at of time,” mentioned Vaswani.
“So even if you’re getting debt at related charges within the offshore and home market, you may go for a greenback bond issuance, which then helps to maintain your native limits out there as dry powder.”