IREDA raises ₹453 crore through perpetual bonds, issue subscribed 2.69x

State-owned Indian Renewable Energy Development Agency Limited (IREDA) on Thursday (September 11) said it has successfully raised ₹453 crore through its second issue of perpetual bonds at an interest rate of 7.70% per annum. The move strengthens IREDA’s capital base to support financing for green energy projects across the country.

The issue attracted robust investor participation, with total bids amounting to ₹1,343 crore against a base issue size of ₹100 crore and a green shoe option of ₹400 crore. This led to an subscription of 2.69 times, underlining investor confidence in IREDA’s pivotal role as a leading financier in India’s renewable energy sector.

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Pradip Kumar Das, Chairman and Managing Director, IREDA, said, “These bonds will strengthen our tier-I capital and help scale up renewable energy financing, accelerating India’s transition to a greener and more sustainable future. I sincerely thank all the investors for their overwhelming response and continued trust in IREDA, which motivates us to deliver even greater value to the renewable energy ecosystem and the nation."

Perpetual bonds carry unique features, including no maturity or redemption and are callable only at the company’s option. The securities offer a 7.70% annual coupon with a step-up of 50 basis points once in the lifetime of the bond, if not called after 10 years. Ranking senior only to share capital, these hybrid instruments provide equity-like characteristics while offering IREDA a stable, long-term source of capital.

Shares of Indian Renewable Energy Development Agency Ltd ended at ₹146.60, down by ₹1, or 0.68%, on the BSE today, September 11.

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