ReNew Energy Global Plc announced that its wholly owned 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 more than $1.5 billion, resulting in 35 bps tightening of pricing. The issuance underlines ReNew’s ability to raise capital as well as assurance to our stakeholders about the company’s strong balance sheet and liquidity position.
The corporate style notes carry a US dollar coupon rate of 7.95 per cent 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.
During 2023, ReNew repaid more than $1 billion to its offshore bondholders. Over the past fiscal year, the company has refinanced $525 million in the domestic markets in addition to the repayment of $480 million of debt from internal cash flow generation.