IREDA raises Rs 453 crore via perpetual bonds; issue oversubscribed 2.69 times

New Delhi: Indian Renewable Energy Development Agency Limited (IREDA) on Thursday said that it has raised Rs 453 crores at 7.70 percent per annum through its second issue of perpetual bonds, marking a significant step in strengthening its capital base for financing green energy projects.

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The issue drew strong investor interest, with total bids worth Rs 1,343 crores against the base size of Rs 100 crore and a Green Shoe option of Rs 400 crores. This resulted in oversubscription by 2.69 times, reflecting growing confidence in IREDA’s role as a leading financier of India’s renewable energy sector.

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 percent 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.

Commenting on the fund raising, IREDA's Chairman and Managing Director (CMD) Pradip Kumar Das 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.”

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