IREDA raises ₹453 crores via perpetual bonds at 7.70%

The issue drew strong investor interest, with total bids worth ₹1,343 crores against the base size of ₹100 crore and a Green Shoe option of ₹400 crores. 

Indian Renewable Energy Development Agency Limited (IREDA) has raised ₹453 crores at 7.70 per annum through its second issue of Perpetual Bonds, marking a significant step in strengthening its capital base for financing green energy projects.

The issue drew strong investor interest, with total bids worth ₹1,343 crores against the base size of ₹100 crore and a Green Shoe option of ₹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.

Commenting on the development Pradip Kumar Das, Chairman and Managing Director of IREDA 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.”

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 per cent 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.