IREDA raises ₹910 crore via Tier-II bonds to power India's green energy push

Indian Renewable Energy Development Agency Limited (IREDA) has raised ₹910.37 crore via privately placed Subordinated Tier-II Bonds for 10 years at a 7.74% annual coupon, the company informed via an exchange filing on Tuesday.

"The funds raised will enhance IREDA’s Tier-II capital, increasing its Net-worth and Capital to Risk-Weighted Assets Ratio (CRAR), thereby strengthening the company’s ability to support country’s clean energy transition through financing," said the press release.

The fundraising aims to capitalise on market liquidity and align with the borrowing plan approved by the board today.

Aside from these Tier-II bonds, the borrowing plan of ₹30,800 crore for FY26 will also include taxable and green bonds, perpetual debt, tax-free bonds, capital gains bonds, term loans, syndicated loans, external commercial borrowings, and foreign currency bonds. IREDA also aims to secure credit lines from multilateral and bilateral agencies.

"The successful raising of Tier-II capital...will further empower us to accelerate green energy financing, aligning with the Government of India’s target to achieve 500 GW of non-fossil fuel-based energy capacity by 2030," said Pradip Kumar Das, Chairman and Managing Director, IREDA in a statement.

The announcement came post-market hours. IREDA shares saw strong movement today after the RBI revised its Priority Sector Lending (PSL) guidelines on Monday, expanding loan classifications for renewable energy.

IREDA shares surged up to 4% on the NSE today, following a 10% rally on Monday. The stock opened at ₹172, hit an intraday high of ₹176.77—up 4% from the previous close of ₹170—but later slipped to end at ₹169.95, down 0.03%.

IREDA is a 'Navratna' PSU under the Ministry of New and Renewable Energy. The enterprise provides a range of financial solutions, both fund- and non-fund-based, supporting renewable energy projects from inception to completion, including equipment manufacturing and power transmission.