IREDA raises ₹453 crore from oversubscribed perpetual bond issue

Indian Renewable Energy Development Agency Limited (IREDA) successfully raised ₹453 crore at 7.70% per annum through its second issue of perpetual bonds on September 11, 2025. This move aims to strengthen the company's capital base to finance green energy projects.

The perpetual bond issue garnered substantial investor interest, with total bids reaching ₹1,343 crore against a base size of ₹100 crore and a green shoe option of ₹400 crore. This strong demand led to the issue being oversubscribed by 2.69 times, demonstrating growing confidence in IREDA's role in India's renewable energy sector. Pradip Kumar Das, chairman and managing director, IREDA, noted that these bonds will enhance tier-I capital and accelerate renewable energy financing.

Perpetual bonds offer unique features, including no maturity or redemption, and are callable at the company's option. These securities provide a 7.70% annual coupon, with a potential step-up of 50 basis points if not called after 10 years, offering IREDA a stable, long-term source of capital with equity-like characteristics.