IREDA Raises ₹453 Crore Via Perpetual Bonds, Issue Oversubscribed 2.69 Times

Indian Renewable Energy Development Agency Limited (IREDA) has raised Rs. 453 crores at 7.70% per annum through its second issue of Perpetual Bonds, taking a significant step in strengthening its capital base for financing green energy projects.

IREDA, while mentioning these details in a press release, stated, "The issue drew strong investor interest, with total bids worth Rs. 1,343 crores against the base size of Rs. 100 crore and a Green Shoe option of Rs. 400 crores. This resulted in oversubscription by 2.69 times, reflecting growing confidence in IREDA’s role as a leading financier of India’s renewable energy sector.

Commenting on the fundraising, Pradip Kumar Das, Chairman and Managing Director, IREDA, said, “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. 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.”

Perpetual Bonds carry unique features, including no maturity or redemption, and are callable only at the company’s option. The securities offer a 7.70% annual coupon with a step-up of 50 basis points once in the lifetime of the bond, if not called after 10 years. Ranking senior only to share capital, these hybrid instruments provide equity-like characteristics while offering IREDA a stable, long-term source of capital.

Background

Earlier this year, in March, IREDA launched its first-ever perpetual bonds to raise ₹1,247 crore and received ₹24.48 Crore tax refund.

IREDA received this bond at an annual coupon rate of 8.40%. This initiative marked a step in optimizing the company’s capital structure while capitalizing on the current support market conditions. The issuance of Perpetual Bonds is a key move aimed at enhancing IREDA’s Tier-I capital, ensuring a financial foundation to support the rapid expansion of India’s green energy infrastructure.