ReNew Power: New 5NC3 Green $ Bond
Lakshmanan R, CFA, FRM: Head of South & Southeast Asia Corporates - CreditSights
Jonathan Tan Jun Jie: Analyst, South & Southeast Asia Corporates - CreditSights
22 January 2026
Insights into ReNew Power: New 5NC3 Green $ Bond, including:
- Fair Value and Pricing Outlook: Explore CreditSights’ comprehensive analysis establishing a 6.44% fair value for the ReNew Power Green Bond, with expectations for final pricing at 6.425%—45 bp tighter than the 6.875% IPT—offering a high-coupon entry point in a rare S&SEA HY issuance.
- Strengthened Bond Structure: Discover how this 5NC3 senior secured green bond differentiates itself through dual guarantees from intermediate holdco ReNew and ultimate holdco REGP, along with robust security coverage ratio covenants (total ≥1.0x, project ≥0.5x) protecting investor interests.
- Strategic Refinancing Profile: Learn how ReNew Power is deploying $525mn in proceeds to refinance its July 2026 Diamond II bonds, optimizing its debt maturity schedule while reserving residual funds for green project financing and debt repayment across subsidiaries.
- Rigorous Peer Comparison Analysis: See how ReNew Power’s scale advantages—11,423 MW operational capacity and INR 82bn EBITDA—stack up against Continuum (2,397 MW) and Greenko (6,660 MW), with detailed spread adjustments for bond structure, leverage (8.7x vs. peers’ 10.3x-13.8x), and business diversification.
- Investment Decision Framework: While the issuer presents certain fundamental risks that warrant careful consideration, the bond may still appeal to investors seeking high‑coupon green instruments from an established Indian renewable energy producer. The company benefits from strong institutional backing, notably from CPPIB (53.4%) and ADIA (15%), which provides an additional layer of credibility and financial support.
Executive Summary
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Indian renewable power producer ReNew Power is marketing new 5NC3 senior secured green $ bonds at an IPT of 6.875%.
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We see fair value at 6.44%, using Continuum Green Energy Jun-2033 and Greenko Sep-2028 as comps for our relative value analysis.
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We expect the bond to finally price at 6.425%, 45 bp tighter than the IPT and close to our FV estimate.
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While we see limited room for meaningful spread compression or widening post-isse, we advise investors may choose to subscribe given the high coupon on a green issue from a repeat S&SEA HY issuer.
Relative Value
ReNew is marketing new 5NC3 senior secured green $ bonds at an IPT of 6.875%. Proceeds will be primarily used to repay the $525 mn Jul-2026 Diamond II bond, with residuals for debt repayment and/or capex financing at ReNew and some of its subsidiaries. Investor calls commenced across Asia, EMEA, and the US on 19-Jan.
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