IREDA

In a significant move to deepen the pool of sustainable finance in India, the government has granted tax-exempt status to bonds issued by the Indian Renewable Energy Development Agency (IREDA). This decision is poised to make IREDA’s bond offerings substantially more attractive to a wide spectrum of investors, effectively lowering its borrowing costs and enabling greater lending to renewable energy projects.

Indian Renewable Energy Development Agency (IREDA) posted a 36% year-on-year drop in net profit to Rs. 247 crore for the first quarter ended June 2025, largely attributed to a sharp rise in provisioning costs and subdued disbursements. Despite maintaining steady interest income from its renewable energy loan portfolio, the state-run lender faced increased provisioning for potential asset quality pressures. However, total income grew modestly by 6% to Rs. 1,322 crore, supported by higher loan book levels.

State-owned Indian Renewable Energy Development Agency (IREDA) has successfully raised over Rs 2,000 crore through a qualified institutions placement (QIP) that closed on June 10. The QIP, which was oversubscribed 1.34 times, saw strong participation from both domestic and international institutional investors, including insurance companies, commercial banks, and foreign portfolio investors (FPIs). The capital raised will bolster IREDA’s tier-I capital, enhance its capital adequacy ratio (CAR), and support the company’s growing role in financing India’s renewable energy projects.