REC lends Azure Power Rs 2,400 cr to prepay bonds
Azure Power, backed by CDPQ and OMERS, has said it would prepay $310 million of green bonds maturing in December 2024 through a loan from state-run REC.
Azure Power had issued this bond, a total of $350 million, 5.65% senior notes in 2019. The instruments were maturing in December 2024. Now, the company will prepay $310 million of the outstanding with a loan of ₹2,400 crore arranged by REC.
The refinancing involves bonds backed by seven utility projects across various states in India, with a total capacity of 615 MW. These green bonds, originally issued in 2019 and listed in Singapore, were used to fund renewable energy projects.
The company had faced concerns regarding covenant breaches after delisting from the NYSE in July 2023 due to delayed financial filings, which led to a technical default. However, Azure Power later released its fiscal 2022 financials, clarifying that no default occurred.
REC, which underwrote the loan, is expanding its renewable energy portfolio, targeting a green finance loan portfolio of ₹3 lakh crore by FY30, with a focus on solar, wind, hydro, and hydrogen initiatives. CDPQ and OMERS Infrastructure collectively hold a 75% stake in Azure Power.
Stock Trading
Market 101: An Insight into Trendlines and Momentum
By — Rohit Srivastava, Founder
Stock Trading
Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading
By — Rohit Srivastava, Founder
Stock Trading
Market 103: Mastering Trends with RMI and Techno-Funda Insights
By — Rohit Srivastava, Founder
Stock Trading
Market
