MUMBAI : Indian Renewable Energy Development Agency Ltd is likely to raise 5 bln rupees through government-serviced bonds, a source told Cogencis today.
The proceeds of the issue will be used for Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahaabhiyan–the subsidised solar water pump scheme–announced in the Budget.
“The bidding for the issue may be in the last week of January or the first week of February,” the source said.
According to the project proposal by the Ministry of New and Renewable Energy, the company plans to raise around 240 bln rupees over a period of nine years to fund the scheme, which will be over and above the budgetary support of 100 bln rupees over a period of five years.
The company’s planned issue will be for 10 years or 15 years, depending on which is “more suitable for the company”, the source said.
So far in the current financial year, National Bank for Agriculture and Rural Development and Air India Assets Holdings Ltd have raised 19.63 bln rupees, and 70 bln rupees, respectively, through government-serviced bonds.
In September, Indian Renewable Energy Development Agency had raised 10 bln rupees through bonds maturing in 10 years at 8.00%. The issue was fully subscribed.
Separately, the company may raise funds this financial year to meet their own requirements, the source said. End