ReNew Raises $300 Million via Rights Issue
Clean energy firm ReNew Power has announced to have raised $300 million (approx. Rs 2,050 crore) through a rights issue.
Goldman Sachs, Abu Dhabi Investment Authority (ADIA), and Canada Pension Plan Investment Board (CPPIB) have subscribed to the issue, with each of the shareholders infusing $100 million, a company statement said.
A rights issue is a dividend of subscription rights to buy additional shares in a company made to the company’s existing shareholders. The rights issue involved ReNew Power issuing Compulsorily Convertible Preference Shares (CCPSs) to each of the investors, which will be converted into equity at a subsequent stage.
“The rights issue will enable our existing investors to deepen their investment in ReNew reflecting their continued faith in the Indian renewable energy market. The proceeds of the issue will be used primarily as capex for our existing pipeline of projects,” ReNew Power’s Chairman and MD Sumant Sinha said.
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As of May 2018, Goldman Sachs, Canada Pension Plan Investment Board and Green Rock, hold 48.62%, 16.22% and 15.92%, respectively, of ReNew Power’s paid-up share capital.
Backed by Asian Development Bank and Global Environment Fund, ReNew Power raised $350 million in debt funding from Overseas Private Investment Corp (OPIC), and another $435 million through issuance of dollar denominated green bonds.
ReNew Power is one of the largest renewable energy independent power producer (IPP) in India. As of June 2019, it had a total capacity of over 8 GW of wind and solar power assets across the country, including commissioned and under-development projects. It develops, builds, owns, and operates utility-scale wind and solar energy projects as well as distributed solar energy projects that generate energy for commercial and industrial customers.
–Published with the permission from Saur Energy
