ReNew Energy Global Plc, India’s leading clean energy company, announced that its subsidiary, Diamond II Limited, has raised $400 million through senior secured green bonds. The high-yield issuance, the first from India in over a year, received strong demand from investors in the US, Europe, and Asia, resulting in an oversubscription of approximately 4 times with a total investor demand exceeding $1.5 billion. The corporate notes carry a US Dollar coupon rate of 7.95 percent and have been rated Ba3 by Moody’s and BB- by Fitch. The proceeds will be utilized to refinance existing dollar debt and fund various growth initiatives.
ReNew’s ability to raise capital through green bonds underlines the company’s strong balance sheet and liquidity position, which will allow it to accelerate its renewable energy initiatives, drive innovation, and reduce its cost of capital. The Notes are certified by the Climate Bond Initiative and align with the ICMA Green Bond Principles, including a development impact assessment.
Kailash Vaswani, ReNew’s President Corporate Finance, stated that strong investor demand from global investors underscores the growing demand for renewables and validates the company’s position as an industry leader. During the current fiscal year, ReNew has repaid over $1 billion to its offshore bondholders and refinanced $525 million in the domestic markets, in addition to repaying $480 million of debt from internal cash flow generation.
In February, the company rebranded itself as ReNew to reflect its transition from a pure-play renewables company to a decarbonization partner providing end-to-end solutions across the decarbonization spectrum, including clean energy, energy storage, and carbon markets. ReNew has been leveraging digital technologies and proprietary AI to address the increasingly complex requirements of customers and users of renewable energy, where the company is a market leader.