New Delhi, Aug 29 Indian Renewable Energy Development Agency Limited (IREDA) achieved a significant milestone on Thursday by securing its international credit rating which will help the government-owned financial company to secure funds from global markets at lower rates of interest.
The International Credit Rating Agency, S&P Global Ratings Limited assigned 'BBB-' long-term and 'A-3' short-term issuer credit ratings to IREDA, with Outlook 'Stable', the Ministry of New and Renewable Energy said.
This rating will enable IREDA to expand its reach in the international market, tapping into attractive sources of funding and supporting its borrowing plan.
In the rating update released by S&P Global, the agency stated: "We rate IREDA one notch above our starting point for rating finance companies (FINCOS) in India to reflect ongoing government support.”
IREDA Chairman & Managing Director Pradip Kumar Das said: "The international credit rating assigned to IREDA is a testament to our commitment to upholding the highest standards of corporate governance and maintaining the trust of our investors and stakeholders. This rating will support our efforts to secure funds at competitive rates and enhance our footprint in global markets. We remain focused on maintaining our strong market position, robust financial performance, and exemplary corporate governance to drive sustainable development."
Meanwhile, IREDA also announced on Thursday that its Board of Directors has given in-principle approval to raise equity capital of up to Rs 4,500 crore.
The funds will be raised in one or more tranches through methods including Further Public Offer (FPO), Qualified Institutional Placement (QIP), Rights Issue, Preferential Issue, or other permitted modes, the green financing NBFC said in a regulatory filing.
The number of securities to be issued will be decided at a later date. The fundraising initiative is subject to approval from the Central government and other relevant statutory and regulatory authorities, the company said.
IREDA is a Mini Ratna company under the administrative controls of the ministry of new and renewable energy.
It offers a range of financial products and associated services, from project inception to post-completion, for renewable energy projects and related activities such as equipment manufacturing and transmission.
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