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ReNew Power said on Tuesday that it has successfully refinanced its 2024 maturity dollar-denominated bonds worth $525 million. The bonds were issued in 2019. The refinancing has brought down the interest cost by 200 basis points.
“ReNew issued bonds worth $ 525 million in 2019, which were set to mature in 2024. By refinancing the dollar-denominated bonds ahead of time, ReNew has shown strong and continued access to domestic debt capital, as well as an ability to proactively manage refinancing risk,” The Nasdaq-listed firm said in a statement.
The refinancing has cut the bonds’ INR interest cost by 200 basis points, with the interest rate fixed for three years while pushing out the maturity to the end of fiscal year 2027. The rate reduction, rate fixing, and tenor extension have taken place against the backdrop of a rising interest rate environment in the broader markets, it added.
This pre-emptive refinancing mitigates near-term refinancing risk for bonds and provides liquidity to bond investors.
ReNew Power’s CFO Kedar Upadhye, said, “In today’s business climate, being pro-active and flexible in one’s financing strategy is key, and our team has taken the lead in this by making us the first Indian renewable energy to raise money onshore to retire US dollar bond obligations”.
As ReNew Power helped spearhead India’s energy transition, The company has mitigated refinancing risk without depleting its growth capital and will continue to look at multiple pools of capital to further abate refinancing risk, he added.
ReNew’s cash flow to equity from operating assets for FY22 was ₹1,289 crore ($170 million), an increase of 92.6 per cent over FY21. The cash flow to equity from operating assets for Q4 FY22 declined 211.8 per cent over Q4 FY21 at ₹501.6 crore ($66 million).
For FY23, the company’s adjusted EBITDA is expected at ₹6,600–6,900 crore, while cash flow to equity is expected in the range of ₹2,100-2,720 crore.
The company’s commissioned capacity rose by 0.13 gigawatts (GW) during Q4 FY22. As of March 31, 2022, Its portfolio consisted of 10.7 GW of which 7.6 GW has been commissioned and 3.1 GW is committed.
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