NEW DELHI: State-run Indian Renewable Energy Development Agency (IREDA) has expressed confidence about "exceeding" loan disbursement target of Rs 3,600 crore this fiscal even as its tax-free bond issue of Rs 1,000 crore is opening tomorrow.
"We will exceed the Rs 3,600 crore loan disbursement target this fiscal which is higher than Rs 2,600 crore for 2014-15.
We have already achieved 50 per cent of the target so far," IREDA Chairman and Managing Director K S Popli told reporters here.
IREDA's tax-free bond issue of Rs 1,000 crore (base issue size) will open tomorrow and close on January 22. The issue is with an option to retail over-subscription up to Rs 1,716 crore.
Popli said, "We have already raised Rs 284 crore through bonds during this fiscal. We had increased the loan disbursement target by 40 per cent for this fiscal compared to 2014-15 under our MoU with the government. We are expecting similar increase for 2016-17 in view of government' focus on renewable energy sector."
Popli informed that during the next fiscal, government has planned to add 12,000 MW of solar power capacity which will be huge opportunity for all players.
IREDA is an non-banking finance company which was created to promote renewable energy sector in the country. Its loan portfolio was Rs 8,908.22 crore as on March 31, 2015.
Government had allowed IREDA to raise Rs 2,000 crore through tax-free bonds. Besides, it has also asked Power Finance Corp, Rural Electrification Corp and NTPC Ltd to raise Rs 1,000 crore through tax-free bonds to promote renewable energy in the country.
For bondholders like QIBs, domestic corporates and HNIs, the bonds shall carry interest at the annual coupon rate of 7.28 per cent, 7.49 per cent and 7.43 per cent, for a tenor of 10 years, 15 years and 20 years respectively.
For retail individual Investors, the Bonds shall carry interest at the coupon rate of 7.53 per cent, 7.74 per cent and 7.68 per cent, for a tenor of 10 years, 15 years and 20 years respectively. The minimum application size for the issue is 5 Bonds (Rs 5,000) (individually or collectively, across all Series of Bonds) and in the multiple of One Bond (Rs 1,000) thereafter.