IREDA raises Rs 453 crore via perpetual bonds, issue oversubscribed 2.69x

New Delhi, Sep 11 The Indian Renewable Energy Development Agency Limited (IREDA) on Thursday announced that it has successfully raised Rs 453 crore through its second issue of perpetual bonds, offering a 7.70 per cent annual interest rate.

The fundraising took place on September 11 and received a strong response from investors, with bids worth Rs 1,343 crore.

Against a base size of Rs 100 crore and a green shoe option of Rs 400 crore, the issue was oversubscribed 2.69 times.

IREDA said the funds raised will strengthen its capital base and support the financing of renewable energy projects across the country.

Chairman and Managing Director Pradip Kumar Das thanked investors for their trust, saying the strong response reflected confidence in IREDA’s role as a key driver of India’s renewable energy transition.

“These bonds will strengthen our Tier-I Capital and help scale up renewable energy financing, accelerating India’s transition to a greener and more sustainable future,” Das stated.

He added that the bonds would help scale up financing and accelerate the move towards a greener and more sustainable future.

“I sincerely thank all the investors for their overwhelming response and continued trust in IREDA, which motivates us to deliver even greater value to the renewable energy ecosystem and the nation,” he mentioned.

Perpetual bonds are unique instruments as they have no fixed maturity date and can only be redeemed at the company’s discretion. The securities carry a 7.70% annual coupon, with a one-time step-up of 50 basis points if not called after 10 years. Considered hybrid instruments, they rank senior to equity and provide companies with long-term, stable capital while offering investors steady returns.

Meanwhile, earlier this year, IREDA has successfully raised Rs 2,005.90 crore through Qualified Institutions Placement (QIP).

The Indian public sector enterprise said on June 11 that the capital was mobilised by issuing 12.15 crore equity shares at a price of Rs 165.14 per share, which includes a premium of Rs 155.14 per share over the face value of Rs 10.

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