IREDA raises Rs 9.1 billion through Tier-II bonds

Indian Renewable Energy Development Agency Limited (IREDA) has raised Rs 9.1 billion through privately placed subordinated Tier-II bonds. The bonds, issued with a 10-year tenure, carry an annual coupon rate of 7.74 per cent.

The capital raised will enhance IREDA’s Tier-II capital, strengthening its net worth and improving its capital to risk-weighted assets ratio. 

The funds will be utilized to enhance liquidity in the financial market and support IREDA’s borrowing strategy. This will facilitate increased renewable energy financing and enable the deployment of green energy projects across the country.

This month, IREDA raised Rs 12.47 billion through perpetual bonds at an annual coupon rate of 8.40 per cent. These funds were aimed at strengthening its Tier-I capital and expanding financing for renewable energy projects.

The funds will support the Government of India’s target of achieving 500 GW of non-fossil fuel-based energy capacity by 2030.