ReNew: Refinance Dollar-Denominated Bonds

July 15, 2022

ReNew Energy Global plc recently refinanced its bonds worth USD 525 million, which was scheduled to get mature in 2024, from Indian non-banking financial company.

Highlights

The dollar-denominated bonds were refinanced with amortising project debt from Indian non-banking financial company.
ReNew Energy Global Plc has become the first renewable energy company in India, to refinance the dollar-denominated bonds.
ReNew had issued bonds worth USD 525 million in 2019. These bonds are set to mature in 2024.

Significance of the refinancing

By refinancing dollar-denominated bonds before the time, company has shown strong and continued access towards domestic debt capital, as well as company’s ability to proactively manage refinancing risk. Refinancing has reduced the interest cost on bonds by 200 basis points. Interest rate has been fixed for three years while maturity has been pushed to the end of 2027. Reduction in rates, rate fixing and extension in tenor took place in the light of increasing interest rate environment.

ReNew Power

It is the largest renewable energy company in India, in terms of operational capacity. It is based in Gurgaon, Haryana. The company has an asset base of more than 10 GW, with operational capacity of 5 GW. The company operates more than 110 projects in 18 states of India. ReNew Power was established by Sumant Sinha in 2011. First project of the company was started in May 2012, at Jasdan in Gujarat.

Dollar Bond

Dollar bond is also called as dollar-denominated bond. It represents that, this bond is issued outside U.S. by U.S. entities or within U.S. by foreign government and corporations. Dollar bonds can cover wider participation, as a result, a larger market, as compared to securities denominated in other currencies.

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