New Delhi: In a significant development for India's renewable energy financing landscape, Nasdaq-listed ReNew Energy Global Plc has successfully raised $600 million through bonds with a coupon rate of 6.5% for a five-year tenure. According to sources familiar with the matter, this marks a notable achievement for the company and the broader green energy sector.
Historic IFSC Debut and Favorable Terms
The bond issuance represents the first-ever dollar-denominated bond issue conducted at the International Financial Services Centre (IFSC) located in GIFT City, Gujarat. This pioneering move underscores the growing importance of IFSC as a global financial hub for Indian companies seeking international capital.
The bond issue, which closed recently, witnessed overwhelming investor interest, being oversubscribed by four times. High-quality global investors from Asia, the United Kingdom, and the United States actively participated in the offering, demonstrating strong confidence in ReNew's financial prospects and India's renewable energy story.
Notably, the 6.5% coupon rate is 1.4% lower than the company's previous bond issue of $525 million raised in 2023 for a three-year tenure. This reduction in borrowing cost reflects improved market perception and potentially stronger financial metrics.
Context of Delisting Plan Collapse
This successful bond raise comes against the backdrop of ReNew's delisting plan from Nasdaq encountering obstacles. In December, UAE's Masdar withdrew its $1 billion cash offer and exited the investor consortium that had proposed to take ReNew private. The consortium, which included the Canada Pension Plan Investment Board (CPPIB), the Abu Dhabi Investment Authority (ADIA), and founder and CEO Sumant Sinha, had initially aimed to buy out listed shares to privatize the company.
The promoters' consortium had increased its offer price to $8.15 per share in cash, up from the previous offer of $7.07 per share. CPPIB, ADIA, and Sinha collectively own 64% of the company, while Masdar is a UAE government-backed renewable energy firm that withdrew from the privatization effort last December after a final non-binding offer was made in October.
Financial Performance and Operational Scale
For the quarter ended September (Q2 FY26), ReNew reported a total income of ₹38,557 million ($434 million), representing a substantial 29% increase from ₹29,887 million ($337 million) in Q2 FY25. However, net profit for the quarter saw a 5.3% decline to ₹4,675 million ($53 million), compared to ₹4,939 million ($56 million) in the corresponding quarter of the previous year.
As of September 30, 2025, the company's impressive portfolio consisted of 18.5 GW of renewable energy capacity along with 1.1 GWh of battery energy storage systems. Additionally, ReNew operates 6.5 GW solar module manufacturing facilities and a 2.5 GW solar cell manufacturing facility that is currently operational. The company is also constructing a new 4 GW solar cell manufacturing facility to further expand its production capabilities.
Broader Industry Challenges and Opportunities
The bond issuance occurs at a time when India's renewable energy sector faces several challenges, including approximately 43 GW of unsigned power purchase agreements and persistent curtailment of power generation in states like Rajasthan and Gujarat. These obstacles highlight the complex operating environment for green energy companies despite growing investment interest.
ReNew's financing success follows other strategic moves, including a $100 million raise from British International Investment (BII), the UK's development finance institution, in May last year to accelerate the growth of its solar manufacturing business in India. The company also recently sold 300 MW solar projects to Singapore's Sembcorp in a $190 million deal, demonstrating active portfolio management.
India's Green Energy Investment Landscape
Investments and financing in India's green energy space have gained remarkable momentum in recent years, driven by the government's ambitious target of achieving 500 GW of non-fossil power generation capacity by 2030. According to EY, total investment in the country's energy transition space during 2017-2025 is projected to reach approximately $62 billion.
Deloitte India has projected that India's climate and energy transition sector would require a massive $1.5 trillion investment by 2030, considering growing decarbonization opportunities across various sectors and the need to expand transmission capacity to integrate increasing green power supply.
With the government setting a target to auction 50 GW of renewable power annually starting in 2023, the pace of capacity addition has accelerated significantly. As of November 2025, India's total renewable energy capacity stood at 253.96 GW, with an impressive addition of 44.51 GW in 2025 alone, indicating robust growth in the sector despite existing challenges.
