Shares of Indian Renewable Energy Development Agency Limited (IREDA) rose 1.99% to Rs 164.87 in early trading on Friday, March 28, after the company announced it had secured a major overseas funding deal. IREDA has signed a Facility Agreement with the Tokyo Branch of State Bank of India (SBI) for raising JPY 26 billion under the External Commercial Borrowing (ECB) route. This includes a Green Shoe Option of JPY 10 billion.
According to the company’s release, this unsecured five-year facility will be repaid as a bullet payment at maturity. Importantly, the landed cost of the borrowing (after hedging) is expected to be below 7%, making it more cost-effective than similar loans available in the Indian market.
IREDA’s Chairman and Managing Director Pradip Kumar Das noted that the facility will allow the company to diversify its resource base, reduce costs, and bolster lending operations in India’s renewable energy sector. He also emphasized that the transaction reflects strong global investor confidence in the company’s financial stability and growth potential.
The company continues to hold an international credit rating of ‘BBB-’ (long-term) and ‘A-3’ (short-term) with a Stable outlook from S&P Global.
As of 9:36 am, IREDA’s stock was trading at Rs 164.87, up 1.99%, with a market capitalization of Rs 443.13 crore.
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