VRET issues domestic bond worth Rs 6.50 billon

Virescent Renewable Energy Trust (VRET) has raised Rs 6.50 billion through a domestic bond issuance across 7.33-year (Rs 1.5 billion) and 10-year (Rs 5 billion) tranches.

It is the largest single series issuance of Rs 5 billion in 10-year tenor by a renewable energy (RE) company. The average quarterly coupon of the bonds is 7.93 per cent, fully fixed for the entire tenor. VRET will primarily use the bond proceeds to fund its immediate acquisition related debt requirements as it scales up its portfolio from the existing 450MW (peak) of operational solar projects. The bonds are assigned the highest domestic rating of AAA (stable) by CRISIL and India Ratings. The bonds have subscription by marquee domestic financial institutions including India Infrastructure Finance Company Limited and Aseem Infrastructure Finance Limited.

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