India’s Green Revolution: IREDA Launches Perpetual Bond to Fund Renewable Energy Projects
India’s transition to a cleaner and more sustainable future just got a major boost as the Indian Renewable Energy Development Agency (IREDA) announced the issuance of its first-ever perpetual bond, worth Rs 1,247 crore (approximately $170 million). The move is aimed at scaling up financing for renewable energy projects, propelling India’s green revolution further.
The perpetual bond, with an annual coupon rate of 8.4%, marks a significant step in optimizing IREDA’s capital structure, according to a stock exchange filing. “This landmark initiative marks a major step in optimizing the company’s capital structure while capitalizing on the current supportive market conditions,” said IREDA’s Chairman and Managing Director, Pradip Kumar Das. The move is expected to strengthen the company’s capital base, enabling it to channel more funds towards renewable energy projects.
The issuance of perpetual bonds comes hot on the heels of IREDA’s board decision to increase its borrowing limit for the financial year 2024-25 from Rs 24,200 crore to Rs 29,200 crore. The additional funds will be raised through a range of financial instruments, including taxable bonds, perpetual debt instruments, bank loans, international credit lines, external commercial borrowings, and short-term loans.
IREDA received a tax refund of Rs 24.48 crore from the Income Tax Department on March 19, which is linked to partial relief granted by the Commissioner of Income Tax (Appeals) for the assessment year 2011-12. However, the company is still awaiting nearly Rs 195 crore in tax refunds for various assessment years, including 2010-11, 2012-13, 2013-14, and 2015-16 to 2018-19.
The news sent IREDA’s stock price soaring momentarily, with shares trading flat at Rs 150.23 before later stabilizing. As India’s energy landscape continues to shift towards cleaner and more sustainable alternatives, IREDA’s perpetual bond issuance is a significant step in the right direction, ensuring a brighter future for the country’s energy needs.
Original Source: https://theshillongtimes.com/2025/03/20/state-owned-ireda-launches-1st-ever-perpetual-bond-to-raise-rs-1247-crore/
Category : NATIONAL,News Alert
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Publish Date: 2025-03-20 15:22:00
