Virescent Renewable Energy Trust (VRET), a leading Indian renewable energy platform sponsored by global investment firm KKR, has raised Rs 6.5 billion through a domestic bond issuance that included tranches of 7.33 years (Rs 1.5 billion) and ten-year (Rs 5 billion). According to the statement, this is the highest single series issuance of Rs 5 billion by a renewable energy company over a 10-year tenor. Compared to VRET’s previous Rs 10 billion bond sale in November 2021, this bond issuance provides a new yield curve for the company while also attaining considerable tenor extension.
Reportedly, the revenues from the bond will primarily be used to pay VRET’s immediate acquisition-related financing obligations as it expands its portfolio beyond the existing 450 MW (peak) of operational solar projects. CRISIL and India Ratings assigned the bonds the highest domestic rating of AAA (stable). KKR is a leading global investment company that manages alternative asset classes such as private equity, credit, tangible assets, and hedge funds through strategic partners.
In November 2021, VRET raised Rs 10 billion ($134.4 million) in non-convertible debentures (NCD) its debut issuance, which was split into three tranches of three, five, and seven years. This was the first time a renewable energy InvIT has issued securities in India.