 "Ireda’s Bold Financial Moves: Securing Green Future with Global Ratings")
The Indian Renewable Energy Development Agency (IREDA) is planning to raise approximately Rs 25,000 crore through debt and around Rs 4,500 crore via equity this fiscal year. Chairman Pradeep Kumar Das highlighted that they are working with the government to approve a 10% dilution of their stake. Recently, S&P Global Ratings assigned IREDA a ‘BBB-‘ long-term and ‘A-3’ short-term rating, which will enhance their ability to secure international funding. IREDA aims to establish a robust capital base to meet its financial requirements and contribute to India’s Net Zero goals with a draft Green Taxonomy submitted to the Ministry of New & Renewable Energy. The agency is also eyeing opportunities in the GIFT City for future fundraising initiatives.
The Indian Renewable Energy Development Agency (IREDA) is planning to raise approximately Rs 25,000 crore in the debt Market and around Rs 4,500 crore through equity in the current fiscal year. This announcement was made by Pradeep Kumar Das, the chairman and managing director of IREDA, during the CII Financing Summit 3.0.
Das revealed that IREDA has submitted a draft Green Taxonomy to the Ministry of New and Renewable Energy (MNRE) over a year ago and is currently in an advanced stage of review. The agency is seeking government approval to allow a natural dilution of their stake by up to 10 percent, which is pending a final decision.
He expressed confidence about meeting the equity requirements, estimating that the funds would be secured by January-February to maintain a healthy loan book and capital adequacy ratio. IREDA is also hoping to be included in the list of companies eligible to raise funds through bonds under section 54EC of the Income Tax Act.
Recently, S&P Global Ratings assigned IREDA a ‘BBB-‘ long-term and ‘A-3’ short-term issuer credit rating, which has a stable outlook. Das emphasized the importance of not just obtaining but also maintaining this rating to enhance IREDA’s capabilities in the international Market.
Das also mentioned that the implementation of the Green Taxonomy is vital for increasing the availability of funding for climate projects, thus supporting India’s efforts towards its Net Zero goals. Additionally, IREDA is working towards starting operations in the GIFT City to further diversify its funding sources.
As IREDA moves forward with these plans, it aims to tap into the overseas Market, which could significantly reduce borrowing costs and enhance its financial stability.
Tags: IREDA, Renewable Energy, Green Taxonomy, Debt Market, S&P Global Ratings, Climate Change, Investment, India News, Sustainable Finance.
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What is Ireda planning to do in FY25?
Ireda plans to raise around Rs 29,500 crore through debt and equity. -
Why is Ireda raising such a large amount?
Ireda is raising funds to support its projects and expand its operations in the renewable energy sector. -
How will the money be raised?
Ireda will raise the funds through a mix of debt and equity options. -
What projects will benefit from this funding?
The funding will mainly support renewable energy projects, including solar and wind initiatives. - Does this fundraising affect Ireda’s current financial stability?
The fundraising is intended to strengthen Ireda’s financial position and enable growth, so it should have a positive impact overall.
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