IREDA launches first-ever perpetual bonds to raise Rs 1,247 crore

State-owned renewable energy developer and financier Indian Renewable Energy Development Agency (IREDA) has launched its first-ever perpetual bond, to raise Rs 1,247 crore, triggering a modest uptick in early trade on March 20, however the shares have cooled off and slipped into the red. Additionally, the company has also received a tax refund of Rs 24.48 crore.

In an exchange filing shared on March 20, IREDA said the perpetual bonds have been issued at an annual coupon rate of 8.4 percent. "This landmark initiative marks a major step in optimizing the company's capital structure while capitalizing on the current supportive market conditions," IREDA said.

The PSU called the issuance of perpetual bonds a 'strategic move' to enhance Tier-I capital to back the expansion of green energy infrastructure. Speaking on issuance, IREDA Chairman and Managing Director Pradip Kumar Das said, "Strengthening our capital base through Perpetual Bonds will enable us to scale up financing for renewable energy projects, accelerating India’s transition to a cleaner and more sustainable future."

This development comes days after IREDA's board decided to hike the borrowing limit for FY25 to Rs 29,200 crore from Rs 24,200 crore. The increased in borrowing will be through instruments like taxable bonds, perpetual debt instruments, term loan from banks, lines of credit from international agencies, external commercial borrowing, short terms loans from banks and more.