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Indian Renewable Energy Development Agency (IREDA) is planning a public listing and issue green bonds in domestic and international markets to mobilize capital for lending.
IREDA also plans for setting up an Alternate Investment Fund (AIF) to tap pension, insurance, and Environmental, Social and Governance (ESG) funds.
The initial public offer (IPO) by one of the largest lenders to the green energy space comes in the backdrop of India announcing a renewable energy target of 450 gigawatt (GW) by 2030 that will require large financing requirement.
Pradip Kumar Das, Chairman & Managing Director (CMD), IREDA highlighted that, “IREDA is presently a debt listed company and it is fully geared up for working in the direction of getting equity listed. IREDA shall also come out with the IPO of fresh Equity shares and plans to make further issue of Green Bonds in the international & domestic market to garner capital for onward lending.”
CMD, IREDA further underlined that IREDA is in the process of setting up a debt fund in the form of an Alternate Investment Fund (AIF) to tap large Institutional Investors such as Pension funds, Insurance Funds, Environmental, Social and Governance Funds, etc. AIF will also help IREDA in financing new projects of those borrowers who are nearing the exposure limit. The company is also planning to do Asset-Based Securitisation (ABS) by issuance of Pass-Through Certificates.
Addressing the shareholders, Das said that, “despite the pandemic regime, IREDA completed the FY 2020-21 on second highest loan disbursements (since inception) amounting to Rs. 8,827 Crore, highest ever Profit Before Tax of Rs. 569.52 Crore with an increase of 136.20% over the amount of Rs. 241.11 Crore in the previous year and a net reduction in NPA from 7.18% in the previous year to 5.61% ending FY2020-21, which is a significant reduction of approx. 22% from the previous year.
“IREDA is geared up towards a five-fold growth in the loan book from ₹280 billion (3.77) in March 2021 to ₹1.35 trillion (~$18.21 billion) in March 2026” he added.