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ReNew Energy Global plc (ReNew), India’s largest renewable energy company, today announced that it had refinanced its 2024 maturity dollar denominated bonds with amortising debt from an Indian nonbank financial company. This is the first Indian renewable energy firm to do this.
ReNew issued bonds in 2019 worth US$ 525 millions. These bonds were due to mature in 2024. ReNew was able to refinance the dollar-denominated bonds in advance, demonstrating strong and continuous access to domestic debt capital as well as the ability to manage refinancing risks proactively.
This refinancing has cut the bonds’ INR interest cost by 200 basis points, with the interest rate fixed for three years while pushing out the maturity to the end of fiscal year 2027. The rate reduction, rate fixing, and tenor extension have taken place against the backdrop of a rising interest rate environment in the broader markets. This pre-emptive refinancing mitigates near-term refinancing risk for bonds and provides liquidity to bond investors.
Speaking on the refinancing of debt, ReNew CFO Kedar Upadhye, said, “In today’s business climate, being pro-active and flexible in one’s financing strategy is key, and our team has taken the lead in this by making us the first Indian renewable energy to raise money onshore to retire US dollar bond obligations.
As we help spearhead India’s energy transition, we have mitigated refinancing risk without depleting the company’s growth capital and will continue to look at multiple pools of capital to further abate refinancing risk.”
ReNew continues to rapidly expand its capacity, with its gross total portfolio recently surging over 25 % to ~12.8 GW from 10.2 GW at the beginning of 2022.