Latest News | Virescent Renewable Energy Trust Raises Rs 650 Cr Via Bonds

New Delhi, Feb 7 (PTI) KKR-backed Virescent Renewable Energy Trust ((VRET) has raised Rs 650 crore through domestic bond issue.

"Virescent Renewable Energy Trust (VRET) raised Rs 650 crore through a domestic bond issuance across 7.33-year (Rs 150 crore) and 10-year (Rs 500 crore) tranches," a VRET statement said.

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According to the statement, this transaction marks the largest single series issuance of Rs 500 crore in 10-year tenor by a renewable energy company.

This bond issuance establishes a new yield curve for VRET, while also achieving significant elongation of average tenor as compared to the earlier Rs 1,000 crore bond issuance of VRET in November 2021 (4.8 years to 9.4 years).

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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.

Sanjay Grewal, CEO, Virescent Infrastructure said in the statement, "This bond issuance is a significant achievement in VRET's journey, demonstrating our debt raising capabilities to achieve competitive pricing and longer maturity profiles."

Grewal mentioned that it is very encouraging to see specialised lenders and development finance institutions such as IIFCL and Aseem Infrastructure participate in the long-term debt markets as it will go a long way in creating much needed capital for infrastructure funding.

Virescent Renewable Energy Trust is an infrastructure investment trust (InvIT).

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage hedge funds.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)