ReNew Energy Global (ReNew) said that its wholly-owned subsidiary, Diamond II, has raised $400 million through the issue of senior secured green bonds.The green bonds has received strong demand from investors in US, Europe and Asia as it opened the high-yield issuance out of India after a broad market hiatus of more than a year. The order book was oversubscribed around four times with a total investor demand aggregating in excess of $1.5 billion, resulting in 35 basis points (bps) tightening of pricing. The corporate style notes carry a US Dollar coupon rate of 7.95 per cent and have been rated Ba3 by Moody’s and BB- by Fitch. Proceeds from the issue will be used to refinance existing dollar debt and fund various growth initiatives.The notes have been certified by the Climate Bond Initiative and are aligned with the ICMA Green Bond Principles. The notes also include a development impact assessment, the company said.
ReNew’s President, Corporate Finance, Kailash Vaswani said, “Our green bond issue has opened the Indian high-yield dollar bond market after more than a year. Strong investor demand from global investors underscores the growing demand for renewables and validates our position as an industry leader.”