IREDA raises Rs 910.37 crore via Tier-II bonds

Indian Renewable Energy Development Agency said that it has raised Rs 910.37 crore through the issuance of privately placed subordinated Tier-II bonds for a 10-year tenor at an annual coupon rate of 7.74%.

With this fund raise, the government-owned entity aims to tap liquidity in the current financial market and support the borrowing plan of the company.

The funds raised will enhance IREDAs Tier-II capital, increasing its net-worth and capital to risk-weighted assets ratio (CRAR), thereby strengthening the companys ability to support countrys clean energy transition through financing.

Pradip Kumar Das, chairman and managing director, IREDA, said: The successful raising of Tier-II capital reflects investors' strong confidence in IREDAs financial strength and strategic vision.

This will further empower us to accelerate green energy financing, aligning with the Government of Indias target to achieve 500 GW of non-fossil fuel-based energy capacity by 2030.

Separately, IREDA informed that it has secured board approval for a borrowing program of up to Rs 30,800 crore for FY 2025-26. This borrowing program will utilize a combination of domestic and international debt instruments, including various bonds and loans.

Indian Renewable Energy Development Agency (IREDA) is a 'Navratna' Government of India Enterprise under the administrative control of Ministry of New and Renewable Energy (MNRE). IREDA is a Public Limited Government Company established as a Non-Banking Financial Institution in 1987 engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation. As on December 2024, GoI held 75% stake in IREDA.

The company's standalone net profit jumped 27% to Rs 425 crore on 36% increase in revenue from operations to Rs 1,698 crore in Q3 FY25 over Q3 FY24.

The scrip fell 0.47% to currently trade at Rs 169.05 on the BSE.

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