ReNew Energy Global Plc. said it has successfully refinanced its 2024 maturity dollar-denominated bonds with amortising project debt from an unnamed Indian non-bank financial company. ReNew had issued bonds worth $525 million in 2019, which were set to mature in 2024.
“By refinancing the dollar-denominated bonds ahead of time, ReNew has shown strong and continued access to domestic debt capital, as well as an ability to proactively manage refinancing risk,” the company said in a statement.
“This refinancing has cut the bonds’ INR interest cost by 200 basis points, with the interest rate fixed for three years while pushing out the maturity to the end of fiscal year 2027. The rate reduction, rate fixing, and tenor extension have taken place against the backdrop of a rising interest rate environment in the broader markets,” the statement added.
This pre-emptive refinancing mitigates near-term refinancing risk for bonds and provides liquidity to bond investors, it said.
“In today’s business climate, being pro-active and flexible in one’s financing strategy is key, and our team has taken the lead in this by making us the first Indian renewable energy to raise money onshore to retire U.S. dollar bond obligations,” said Kedar Upadhye, CFO, ReNew.
“As we help spearhead India’s energy transition, we have mitigated refinancing risk without depleting the company’s growth capital and will continue to look at multiple pools of capital to further abate refinancing risk,” he added.
