Ireda may tap $150-m masala bond for green power

The Financial Express - - MONEY & MARKET -

Aug 12: State-run In­dian Re­new­able En­ergy De­vel­op­ment Agency, or Ireda, is plan­ning to is­sue about $100 mil­lion to $150 mil­lion in off­shore ru­pee bonds by Novem­ber to boost lend­ing for green power, a top of­fi­cial said.

“Within the next two to three months, we’re go­ing to is­sue off­shore masala bonds,” Ireda di­rec­tor of fi­nance Satish Ku­mar Bhar­gava said in an interview in Sin­ga­pore. The agency will is­sue the se­cu­ri­ties ei­ther on the Lon­don Stock Ex­change or the Sin­ga­pore Stock Ex­change, he said.

As In­dia tar­gets 175 gi­gawatts of re­new­able en­ergy ca­pac­ity by 2022, an almost four-fold in­crease from the cur­rent base of 45 gi­gawatt, de­vel­op­mentin­sti­tu­tion­swill play a key role in di­rect­ing in­vest­ment. Ireda al­ready raised Rs 1,716 crore through sell­ing bonds in Jan­uary. Bhar­gava­saidtheagen­cyalso seeks credit lines from New De­vel­op­ment Bank.

In the pre­vi­ous fi­nan­cial year, Ireda ap­proved loans worth Rs 7,800 crore while dis­burs­ing Rs 4,300 crore to bor­row­ers -- a 60% in­crease year on year, ac­cord­ing to Bhar­gava. For the cur­rent fis­cal, Ireda wants to ap­prove Rs 10,000 crore with Rs 6,100 crore dis­bursed, he said.

To meet the bur­geon­ing fi­nan­cial needs of the re­new­able en­ergy sec­tor and to com­pete with other lenders, Ireda said in July 2015 that it would move to­ward go­ing pub­lic. “An equity list­ing is planned in In­dia ei­ther in 2017 or 2018,” Bhar­gava said. Bloomberg

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