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Updated December 18th, 2023 at 17:32 IST

IREDA plans Rs 20 billion 10-year bond issue with greenshoe option of Rs 15 billion

IREDA opens bidding for investors and bankers ahead of Wednesday, following its October 10-year bond issuance at a 7.75% coupon rate.

Business Desk
IREDA opens bidding for investors and bankers ahead of Wednesday
IREDA opens bidding for investors and bankers ahead of Wednesday | Image:Pexels
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The Indian Renewable Energy Development Agency (IREDA) announced its intention to raise Rs 20 billion ($241 million), including a greenshoe option of 15 billion rupees, through the issuance of 10-year bonds, as revealed by three merchant bankers on Monday. The company has initiated the bidding process for bankers and investors scheduled for Wednesday. In a previous bond offering in October, IREDA raised Rs 6.83 billion with a 10-year maturity and a coupon rate of 7.75 per cent.

IREDA's upcoming issuance involves a 10-year tenure with a yet-to-be-decided coupon, and the issue size is Rs 5+15 billion. The bidding date is set for December 20, with an AAA rating from Icra and India Ratings. 

Additionally, Bank of Baroda issued 10-year bonds with a coupon rate of 7.71 per cent, totalling Rs 74.25 billion, with the bidding completed on December 18 and an AAA rating from Crisil. HDFC Bank is set to decide the coupon for its 10-year bonds, with an issue size of Rs 10+25 billion, and the bidding is scheduled for December 20, holding an AAA rating from Crisil. 

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NABARD is offering 10-year and 4-month bonds with an undecided coupon, an issue size of Rs 50+50 billion, and a bidding date of December 20, boasting an AAA rating from India Ratings and ICRA. The size mentioned includes the base amount plus greenshoe for some issues. 

(With Reuters Inputs)

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Published December 18th, 2023 at 17:32 IST

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