Ireda Plans Rs 25,000-Crore Debt And Rs 4,500-Crore Equity Raise
The company aims to complete this process within two-three months and will explore various sustainable and green financing options.
Indian Renewable Energy Development Agency Ltd. plans to raise approximately Rs 25,000 crore through the debt market and Rs 4,500 crore via equity in the current financial year, according to Chairperson and Managing Director Pradeep Kumar Das. Ireda has also submitted a draft green taxonomy to the Ministry of New & Renewable Energy, which is nearing final approval.
Ireda is seeking government approval to dilute its stake by up to 10%. The final decision will be made by the government. The company aims to secure Rs 4,500 crore by early 2024 to maintain a strong loan book and capital adequacy ratio. Additionally, Ireda hopes to be included in the list of companies eligible to raise funds through bonds under section 54EC of the Income Tax Act, though the exact amount is yet to be determined.
Last week, S&P Global Ratings assigned Ireda a 'BBB-' long-term and 'A-3' short-term issuer credit rating with a 'stable' outlook. This rating will help Ireda expand its international reach and support its borrowing plans.
Das emphasised the importance of maintaining this rating, noting that Ireda's current capital adequacy ratio is around 20%, with a target range of 17–18% to retain a 'AAA' rating.
Das also mentioned that the implementation of the green taxonomy would enhance capital availability for climate projects and attract global green funding, aligning with India's net zero goals. Although Ireda has not yet received government permission to operate in GIFT City, it plans to raise funds there once approved.
The company aims to complete this process within two-three months and will explore various sustainable and green financing options.
With the sovereign rating secured, Ireda plans to tap into international markets to lower borrowing costs further.
(With PTI inputs)
