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IREDA Issues First-Ever Perpetual Bonds Worth Rs1,247 Crore to Strengthen Capital Base
Mar 21, 2025
The Indian Renewable Energy Development Agency (IREDA) has issued its first-ever perpetual bonds worth Rs1,247 crore at an annual coupon rate of 8.4% to enhance its Tier-I capital. This move aims to strengthen its financial position and expand its renewable energy financing.
Additionally, IREDA received Rs24.48 crore from the Income Tax Department as partial relief for AY 2011-12 due to certain disallowances. A refund of Rs195 crore is also under process for multiple assessment years between 2010-11 and 2018-19.
In January 2024, IREDA announced plans to raise Rs5,000 crore through a qualified institutions placement (QIP) of equity shares.
Financially, IREDA has shown strong performance:
- Loan approvals surged 129% year-over-year to Rs31,087 crore as of December 31, 2024.
- Profit after tax for Q4 2024 grew 45.9% year-over-year to Rs37.376 crore, driven by loan book expansion and reduced net non-performing assets.
This follows IREDA’s Rs1,500 crore bond issuance in June 2023, which was oversubscribed 2.65 times, indicating strong investor confidence in India's renewable energy sector.