ReNew Power to raise Rs 1,000 cr equivalent in part-guaranteed forex bonds

Green energy firm ReNew Power is planning to raise Rs 1,000 crore equivalent in foreign currency bonds after securing a partial guarantee from GuarantCo, according to sources familiar with the matter.

The issuance could be announced in a week or so, and would be the first such issuance in more than a year. This also indicates that the high-yield markets overseas are opening up, but are still circumspect on the likely impact on debt serviceability after the Covid-19 outbreak.

High-yield bonds from Asia totaled $2.2 billion in June, after two months of no issuance, according to rating agency Moody’s. All the seven deals were from China-based property companies, the rater noted. In that sense, ReNew Power would be opening up the chapter for Indian companies after the Covid outbreak.