IREDA Raises Over $133M Through Bonds to Bolster Green Energy Financing

Indian Renewable Energy Development Agency Ltd has raised over ₹1,100 crore ($133 million) through two separate bond issuances to strengthen its financial position and support India’s clean energy transition.

Tier-II bonds

IREDA raised ₹910.37 crore through privately placed subordinated tier-II bonds with a 10-year tenor at an annual coupon rate of 7.74 percent, the state-run renewable energy lender said on Monday.

Tier-II bonds are subordinated debt instruments issued to strengthen a company’s capital base. They fall under tier-II capital, which serves as supplementary capital and helps companies meet regulatory capital adequacy requirements.

The proceeds will enhance IREDA’s Tier-II capital, improving its net worth and capital adequacy ratio, which aligns with its efforts to finance India’s ambitious renewable energy targets.

“The successful raising of Tier-II capital reflects investors’ strong confidence in IREDA’s financial strength and strategic vision,” said Pradip Kumar Das, chairman and managing director of IREDA. “This will further empower us to accelerate green energy financing, aligning with the Government of India’s target of achieving 500 GW of non-fossil fuel-based energy capacity by 2030.”

First-Ever Perpetual Bonds Issue

The latest fundraising follows IREDA’s first-ever issuance of perpetual bonds earlier this month, through which the company raised ₹1,247 crore at an 8.40 percent annual coupon rate. The move is part of a broader strategy to optimize capital structure and reinforce its financial base.

While tier-II bonds strengthen its supplementary capital, perpetual bonds improve its core capital, giving the company more flexibility in financing renewable energy projects.

The firm also received a tax refund of ₹24.48 crore from the Income Tax Department for the 2011-12 financial year, with an additional ₹195 crore in refunds under process for multiple past assessment years.

IREDA, a key player in financing renewable energy projects, has been expanding its capital-raising efforts to meet the growing demand for green financing. The latest bond issuances position the agency to scale up funding for solar, wind and other clean energy initiatives.