Goldman’s ReNew Power Raises 5 Billion Rupees in Green Bonds

  • Bond proceeds to help refinance 90-megawatt wind capacity
  • Kotak Mahindra Bank and IDBI Bank lead managers for issuance

ReNew Power Ventures Pvt. said it raised 5 billion rupees ($73.8 million) in green bonds to refinance debt for 90 megawatts of wind projects in central India.

Mutual funds purchased the entire issue of five-year bonds, Renew Power’s deputy Chief Financial Officer Kailash Vaswani told Bloomberg. The bond issuance was done two months ago but the green certification came only recently, he said.

“We’re not disclosing the coupon rate because we don’t want this to act as the benchmark for future transactions and we want to go lower in future," Vaswani said in a phone interview.

ReNew Power, with Goldman Sachs Group Inc. as its top shareholder, has almost 1 gigawatt of solar and wind power in operation. The company has another gigawatt of power under construction and wants to double capacity by the end of the financial year in March.

The green bonds will refinance debt bearing about 11 percent interest from Kotak Mahindra Bank Ltd. That funding helped ReNew Power build wind projects that were commissioned in March in Dhar and Ujjain districts in the central Indian state of Madhya Pradesh.

Bond issuance being done now are 200 basis points lower than earlier, Vaswani said, adding that Renew Power has raised 20 billion rupees through this route in India till date. The company has more than 23 billion in bonds and loans outstanding, according to data compiled by Bloomberg.

The company is looking to raise $300 million in equity, of which it seeks $100 to $150 million by March, with the balance possibly being raised through an initial public offering next financial year.

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