IREDA, Bank of Maharashtra to raise up to Rs 2,500 cr through bonds

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Indian Renewable Energy Development Agency (IREDA) and Bank of Maharashtra plan to raise up to Rs 2,500 crore through bonds, money market sources said.

IREDA is set to raise up to Rs 1,500 crore, which includes Rs 1,000 crore as greenshoe option. Whereas, Bank of Maharashtra will raise Rs 1,000 crore, which includes Rs 750 crore in greenshoe.

A greenshoe option gives the underwriter the right to sell investors more bonds than planned if the demand is higher than expected.

IREDA’s bonds will mature in 10 years and two months, or on August 25, 2034, while Bank of Maharashtra’s bonds are Basel-III compliant tier II bonds that will mature in 10 years, with call option after five years from date of allotment.

Bidding for the IREDA’s bonds will take place on June 21, between 10:00 AM and 11:00 AM on the electronic bidding platform of BSE.

The bonds of IREDA is rated ‘AAA’ with ‘Stable’ outlook by India Ratings and Icra. Similarly, Bank of Maharashtra’s bonds have been rated ‘AA+’ with ‘Stable’ outlook by CARE and ICRA ratings.

On June 18, National Housing Bank and Tata Capital Ltd raised Rs 3,490 crore through bonds.

National Housing Bank raised Rs 3,200 crore through bonds maturing in 3 years, 2 months and 19 days on September 8, 2027, at a coupon rate of 7.59 percent.