IREDA Plans Public Offering, Perpetual Loans For Green Energy Projects
Date
5/22/2024 2:30:59 PM
(MENAFN- KNN India) New Delhi, May 22 (KNN) The state-run Indian renewable energy Development Agency (IREDA) is preparing for a follow-on public stock offering in the current financial year to bolster its capital and lending capabilities for green energy projects.
In addition to the planned follow-on public offer (FPO), the non-banking financial institution will also pursue perpetual loans to raise funds, IREDA Chairman and Managing Director Pradip Kumar Das told reporters Wednesday.
The renewable energy lender completed an initial public offering last November, raising 21.5 billion rupees (USD 263 million) in an offering that was oversubscribed nearly 40 times.
Das said the company's borrowing target of 242 billion rupees for fiscal 2025 will not be sufficient, necessitating the additional capital raise through the FPO. He did not specify a target amount for the stock sale, reported BL.
The FPO is targeted for the second half of the current fiscal year or first half of fiscal 2026, allowing time for approvals after India's new government takes charge in July 2024. The stock issuance will require Union Cabinet approval.
With a current net worth around 85.6 billion rupees and a 597 billion rupee loan book, IREDA aims to boost lending in fiscal 2025 to support India's renewable energy goals. Loan disbursements rose to around 251 billion rupees in fiscal 2024.
Das emphasised the need to advance green taxonomy standards to facilitate raising 2.5 trillion rupees for green projects by 2030.
IREDA will also soon be listed to issue tax-exempt bonds under Section 54EC of the Income Tax Act.
The agency recently incorporated a subsidiary in Gujarat's GIFT City to access offshore renewable financing and reduce hedging costs.
(KNN Bureau)
MENAFN22052024000155011030ID1108246024
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.