ReNew Power eyes offshore bond market to raise $320 mn to refinance local debt

Renewable energy major ReNew Power Pvt. Ltd is planning to tap the offshore bond market to raise as much as $320 million to refinance local debt, the first such offshore bond issuance by an Indian renewable energy producer since covid-19 disrupted the markets in March.

On Friday, international rating agency Moody’s Investors Service said that it has assigned a Ba3 rating to the proposed 3.5-year USD senior secured notes of up to $320 million to be issued by India Green Energy Holdings.

India Green will use the proceeds from the dollar notes to subscribe to seven-year non-convertible debentures (NCDs) to be issued by 11 restricted subsidiaries (RG3), which are either wholly-owned or majority-owned subsidiaries of ReNew Power, the rating agency said. These subsidiaries comprise of solar and wind projects of over 400 megawatts (MW) capacity.

The proceeds from the NCDs will be used by the restricted subsidiaries to refinance existing debt, pay related transaction costs and fund a ₹750 crore loan (approximately $100 million) to ReNew Power.

ReNew Power is a seasoned participant in the dollar bond market. Earlier this year in January, the company raised $450 million through a dollar bond issuance.

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