INSUBCONTINENT EXCLUSIVE:
S-P Global Ratings Limited last week assigned 'BBB-' long-term and 'A-3' short-term issuer credit ratings to IREDA.| Source: Company
website3 min read Last Updated : Sep 02 2024 | 11:28 PM IST
The Indian Renewable Energy Development Agency (Ireda) plans to raise around
Rs 25,000 crore from the debt market and around Rs 4,500 crore through equity in the current fiscal, a top company official said on
Monday.
The company's chairman and managing director Pradeep Kumar Das also said that Ireda had submitted a draft Green Taxonomy to the
Ministry of New - Renewable Energy (MNRE) one and a half years back and that it is at quite an advanced stage.
"First, we are seeking the
government's approval for allowing natural dilution of their stake down by up to 10 per cent
The government will take a final call on that," Das said during the CII Financing Summit 3.0 here.
Stating that the company is confident
because the kind of equity requirement it needs and what the sector expects from it, he said, "We have initially estimated Rs 4,500 crore by
January-February in order to ensure that we have a fair amount of loan book as well as capital adequacy ratio which is very important."He
also said the Ireda is expecting it to be included in the list of companies that can raise funds through bonds covered under 54EC of the
Income Tax Act and that the quantum of funds to be raised from this instrument was not decided.
S-P Global Ratings Limited last week
assigned 'BBB-' long-term and 'A-3' short-term issuer credit ratings to Ireda, with Outlook 'Stable, which will enable it to expand its
reach in the international market, tapping into attractive sources of funding and supporting its borrowing plan.
Noting that the agency
needs to maintain the rating, Das said, "As important it is to get the rating, it is even more important to sustain the rating
So we're going about it very responsibly.""All development finance institutions and multilateral organisations have been associated with us
since 1997 but we haven't borrowed from them because the landed cost is high," he said.
According to Das, currently, the company's capital
adequacy ratio is around 20 per cent and it needs to ensure this ratio at 17-18 per cent to have a healthy, stable 'AAA' rating in the time
to come.
"The process is in advanced stages, so maybe within a couple of weeks we will get the final news on that," he said.
Earlier
speaking at a panel discussion Das said that Ireda had submitted a draft Green Taxonomy to the Ministry of New - Renewable Energy (MNRE) one
and a half years back.
"As announced by the Finance Minister in her budget speech, Climate Taxonomy is poised to increase the availability
of capital for climate adaptation and mitigation projects
The implementation of this Green Taxonomy would not only accelerate India's journey towards its Net Zero goals but also enable the nation to
attract substantial global green funding by providing a clear list of activities covered under the taxonomy," he said.
Das said that the
company has not received permission from the government to commence operations in the GIFT City as it is still under process and said that
when the company gets it, funds will be raised through the GIFT City.
"We're aiming to complete this in 2-3 months
We will issue all sorts of bonds, we have to decide because we have just received the ratings
And also approach all sorts of sustainable and green financing funds," he added.
He said that now after securing the sovereign rating
IRDEA will be tapping the overseas market to further bring down the borrowing cost.(Only the headline and picture of this report may have
been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)First Published: Sep 02 2024
