IREDA raises ₹910.37 crore via 10-year privately placed tier-II bonds at 7.74%

State-owned Indian Renewable Energy Development Agency Limited (IREDA) on Tuesday (March 25) said it has raised ₹910.37 crore through the issuance of privately placed subordinated tier-II bonds with a 10-year tenor at an annual coupon rate of 7.74%.The raising of tier-II bonds aims to tap liquidity in the current financial market and support the borrowing plan of the company. The funds raised will enhance IREDA’s tier-II capital, increasing its networth and capital to risk-weighted assets ratio (CRAR), thereby strengthening the company’s ability to support the country’s clean energy transition through financing.Pradip Kumar Das, Chairman and Managing Director of IREDA, said, “The successful raising of tier-II capital reflects investors’ strong confidence in IREDA’s financial strength and strategic vision. This will further empower us to accelerate green energy financing, aligning with the Government of India’s target to achieve 500 GW of non-fossil fuel-based energy capacity by 2030.”Also Read: IREDA shares gain for the third day in a row after RBI announces changes to lending guidelinesAlso on Tuesday, IREDA also approved a borrowing plan of ₹30,800 crore for the financial year 2025-26, a move that will significantly boost funding for renewable energy initiatives and support for India’s growing demand for clean energy projects across the country.The IREDA board has sanctioned raising funds through a variety of financial instruments, including bonds, loans, and other mechanisms. The strategic move is expected to provide the necessary capital to accelerate renewable energy development and contribute to India’s ambitious green energy targets.As part of the plan, IREDA is considering the issuance of green bonds and seeking foreign currency loans to diversify its funding sources. These instruments are expected to attract both domestic and international investors, reinforcing IREDA’s commitment to financing sustainable energy projects.Also Read: IREDA to raise ₹1,247 crore via ‘perpetual bonds’; Co to get more tax refundsShares of India Renewable Energy Development Agency Ltd ended at ₹169.85, down by ₹0.20, or 0.12%, on the BSE.
(Edited by : Shoma Bhattacharjee)

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