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IREDA raises US$300m from bond

Green Masala bond an IREDA milestone

Singapore Exchange

Singapore Exchange trading IREDA Masala bond.

The Indian Renewable Energy Development Agency Limited (IREDA) has raised Rs.19.5 billion (US$300 million) through a five-year Green rupee-denominated bond, which started trading on Singapore Exchange (SGX) on 11 October 2017.

IREDA, a government company, is offering the Masala bond at an annualised coupon of 7.125%.

Established in 1987 as a Non-Banking Financial Institution, IREDA is a Mini Ratna (Category – I) Government of India Enterprise under the administrative control of Ministry of New and Renewable Energy (MNRE).

To date, it has financed more than 2,380 renewable energy projects in India.

Kuljit Singh Popli, Chairman and Managing Director at IREDA, said, “IREDA is fully committed to helping achieve Indian Government’s vision of 175 GW renewable energy capacity by 2022.”

The Green Masala Bond is a significant milestone for IREDA in this regard, as we embark on the next phase of renewable and sustainable energy led expansion, said Singh.

“This is another step towards our Honorable Prime Minister’s commitment to the Paris agreement on Climate Change. The overwhelming response to the issue is a testament to the confidence of global investors in IREDA and the Indian renewable sector in general.”

Welcoming IREDA, Tng Kwee Lian, Head of Debt Capital Markets at SGX, said, “We are encouraged by the strong investor interest it received particularly within Asia.

“We look forward to continue supporting IREDA’s capital raising initiatives in the bond market, which has offered investors an opportunity to participate in the fast-growing Indian renewable energy market,” said Tng.

With this new listing, 75% of listed Masala bonds by Indian issuers are now listed on SGX. Today, more than 80% of listed offshore bonds by Indian issuers are listed on SGX, raising about US$66 billion, said SGX.

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