IREDA launches ₹1,247 crore perpetual bond

New Delhi

The Indian Renewable Energy Development Agency (IREDA) has launched its first-ever perpetual bond to raise ₹1,247 crore. The state-owned renewable energy financier aims to optimize its capital structure while leveraging favorable market conditions.

In a stock exchange filing, IREDA announced that the bonds have been issued at an 8.4% annual coupon rate. The move is expected to strengthen the company’s capital base and expand funding for renewable energy projects, furthering India’s transition to a sustainable future.

IREDA Chairman and Managing Director Pradip Kumar Das highlighted that the initiative will help scale up financing for clean energy, ensuring long-term growth. The bond issuance follows IREDA’s decision to increase its borrowing limit for FY 2024-25 from ₹24,200 crore to ₹29,200 crore. Additional funds will be raised through various financial instruments, including taxable bonds, bank loans, and international credit lines.

Alongside the bond launch, IREDA also announced that it received a ₹24.48 crore tax refund from the Income Tax Department, linked to an appeal for the assessment year 2011-12. However, the company is still awaiting nearly ₹195 crore in pending tax refunds from multiple assessment years.

Following the announcement, IREDA’s stock saw a brief rise in early trading on March 20 before settling flat at ₹150.23. The bond issuance marks a significant step in IREDA’s efforts to enhance its financial position and support India’s clean energy ambitions.