State-owned renewable energy financier, Indian Renewable Energy Development Agency (IREDA), on Thursday announced that it has launched its first-ever perpetual bond to raise Rs 1,247 crore.

In a stock exchange filing, the agency stated that the bonds have been issued at an annual coupon rate of 8.4 per cent.

The company called this a significant step towards optimising its capital structure while taking advantage of favourable market conditions.

"This landmark initiative marks a major step in optimizing the company's capital structure while capitalising on the current supportive market conditions," IREDA said.

IREDA Chairman and Managing Director, Pradip Kumar Das, emphasised the importance of this move, saying that “strengthening the company's capital base through perpetual bonds will help scale up financing for renewable energy projects. “

“This, in turn, will accelerate India’s transition to a cleaner and more sustainable future,” he added.

The launch of the perpetual bonds comes shortly after IREDA's board decided to increase its borrowing limit for the financial year 2024-25.

The company raised its borrowing cap from Rs 24,200 crore to Rs 29,200 crore.

The additional funds will be raised through various financial instruments, including taxable bonds, perpetual debt instruments, bank loans, international credit lines, external commercial borrowings, and short-term loans.

Alongside the bond issuance, IREDA also announced that it received a tax refund of Rs 24.48 crore from the Income Tax Department on March 19.

This refund is linked to partial relief granted by the Commissioner of Income Tax (Appeals) for the assessment year 2011-12.

The company added that it is still awaiting nearly Rs 195 crore in tax refunds for multiple assessment years, including 2010-11, 2012-13, 2013-14, and 2015-16 to 2018-19.

The announcement led to a slight increase in the company's stock during early trade on March 20. However, the gains were short-lived as the shares later trading flat at Rs 150.23.