New Delhi, March 20 (IANS). Government -owned Renewable Energy Financer, Indian Renewable Energy Development Agency Limited (EREDA) announced on Thursday that it has launched its first perpetual bond to raise Rs 1,247 crore.
In the stock exchange filing, the agency said that the bonds have been released at an annual coupon rate of 8.4 percent.
Taking advantage of favorable market conditions, the company described it as a major step towards customizing its capital structure.
“This historical initiative is a major step towards customizing the company’s capital structure, taking advantage of the existing subsidiary market conditions,” IREDA said.
Emporation, EREDA Chairman and Managing Director Pradeep Kumar Das stressed the importance of the move, saying, “Strengthening the company’s capital base through perpetual bonds will help increase funding for renewable energy projects.”
“This will speed up moving towards India’s clean and more sustainable future,” he said.
Perpentic bonds have been launched soon after the decision to increase its borrowing limit for FY 2024-25 by the Board of IREDA.
The company has increased its borrowed limit from Rs 24,200 crore to Rs 29,200 crore. Additional funds will be raised through different financial instruments, including taxable bonds, perpetual date instruments, bank loans, international credit lines, external commercial browing and short-term loans.
Along with the release of bonds, IREDA also announced that it received a tax refund of Rs 24.48 crore from the Income Tax Department on March 19.
This refund is associated with partial relief given by the Income Tax Commissioner (Appeal) for the Assessment Year 2011-12.
The company said that it is awaiting a tax refund of about Rs 195 crore for several assessment year including 2010-11, 2012-13, 2013-14 and 2015-16 to 2018-19.
Following this announcement, on March 20, the company’s shares recorded a slight increase during early trade. However, this increase did not last long as the shares were later trading stable at Rs 150.23.
-IANS
SKT/ABM
