The Indian Renewable Energy Development Agency (IREDA) has unveiled plans for an initial public offering of new equity shares and issuance of green bonds in both domestic and international markets to mobilise capital for lending. IREDA also intends to establish an alternative investment fund (AIF) to attract significant institutional investors such as debt funds, pension funds, insurance funds, and environment, social and governance funds. The AIF will assist IREDA in funding new projects for borrowers who are nearing their exposure limit. Asset-based securitization is also in the works, with the agency issuing “pass-through certificates.”
According to reports, IREDA ended the financial year 2020-21 with the second-biggest loan disbursements since its foundation, at Rs 88.27 billion. It also reported the biggest ever profit before tax of Rs 5.69 billion, up 136.20 percent from Rs 2.41 billion the previous year. The agency saw a net drop in non-performing assets from 7.18 percent the previous year to 5.61 percent by the conclusion of FY 2020-21, a 22 percent decline. The loan book at IREDA is expected to rise fivefold from Rs 280 billion in March 2021 to Rs 1.35 trillion in March 2026.
IREDA has also floated tenders to appoint valuers to determine fair market and other values of assets under its loan portfolios in Andhra Pradesh, Telangana, Tamil Nadu and Karnataka. The bid submission deadline is October 13, 2021. The scope of work comprises conducting the valuation of land and buildings, plant and machinery, capital work in progress, inventory, financial assets where applicable, and other such assets financed by IREDA or available to IREDA as guarantee or collaterals.