IREDA to raise nearly $100 mln along with green shoe via 5-yr dollar bonds
This story was originally published at 21:38 IST on 27 July 2026
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NEW DELHI – Indian Renewable Energy Development Agency plans to raise $100 million along with a green-shoe option through five-year dollar-denominated bonds, the company said in a release on Thursday. "We have floated RFP (request for proposal) for the ECB (external commercial borrowing)...so, we have floated a tender," a senior official at the state-owned company said. "It is already approved and floated."
The move by the state-owned company comes in the backdrop of the Reserve Bank of India announcing a concessional dollar-rupee swap facility for external commercial borrowings raised by public sector undertakings. On Jun. 8, the Reserve Bank of India unveiled a concessional swap facility for external commercial borrowings which will remain open up to Jan. 15, 2027, for eligible external commercial borrowings drawdowns made and overseas foreign currency borrowing flows received up to Dec. 31. According to an Informist poll, the RBI's concessional dollar-rupee swap facility and overseas foreign currency borrowings are expected to push overall borrowing to $65 billion in 2026-27 (Apr-Mar).
At present, IREDA holds an international issuer credit rating of "BBB" long-term and "A-2" short-term with a stable outlook from S&P Global. On the domestic front, it has an "AAA" rating from Care Rating, India Ratings and Research, and ICRA for its debt instruments. The proceeds will be used to fund renewable energy, energy efficiency and conservation projects, as well as allied services, according to the press release.
When asked about the fund-raising timeline, the official said the company is completing the due process which may take up to two months to complete. "It should be finalised in around two months timeframe," the official said.
The frequency for the payment is semi-annual and it will be floating interest linked to secured overnight financing rate. The coupon on the proposed five-year dollar-denominated bonds is expected to be competitive with what Power Finance Corp. raised recently. The company already has a benchmark, so it will try to target similar rates, the official said.
The bonds will pay interest semi-annually at a floating rate linked to the secured overnight financing rate. The coupon on the proposed five-year dollar-denominated bonds is expected to be competitive with Power Finance Corp's recent issuance. The company already have a benchmark, so company will try to target similar rates, the official said. On Jul. 10, PFC raised $300 million through dollar-denominated notes priced at 110 basis points over the secured overnight financing rate. "It is a bidding process and we have a benchmark (PFC)...let us see how the market is," the official added.
For the quarter ended March, the company had reported a net profit of INR 4.93 billion on total income of INR 21.81 billion. Monday, shares of the company ended 0.2% lower at INR 120.29 on the National Stock Exchange. End
US$1 = INR 95.91
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Vaishali Tyagi
Edited by Akul Nishant Akhoury
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