Virescent Renewable Energy Trust (VRET) has raised ₹650 crore through a domestic bond issue in two tenors - 7.33-year ( ₹150 crore) and 10-year ( ₹500 crore).
This transaction marks the largest single series issuance of ₹500 crore in a 10-year tenor by a renewable energy company and the average
quarterly coupon of the bonds is 7.93%, fully fixed for the entire tenor.
VRET will primarily use the bond proceeds to fund its immediate acquisition related debt requirements as it scales up its portfolio from the existing 450MW (peak) of operational solar projects.
Crisil and India Ratings have assigned the highest rating of AAA (Stable) to the issue.
Sanjay Grewal, CEO, Virescent Infrastructure, said, “With VRET being a recently established entity in September 2021 and only 5 months into our journey, we are pleased to have issued such long tenor bonds and attracted marquee institutional lenders such as the government backed India Infrastructure Finance Company Limited as well as the NIIF promoted Aseem Infrastructure Finance Limited."
Finance Minister Nirmala Sitharaman in her Union Budget speech had announced that the government proposes to issue sovereign green bonds that will mobilise resources for green infrastructure.
