IREDA shares: PSU Stock rises as firm secures borrowing facility from SBI Tokyo
This five-year unsecured facility, with bullet payment at maturity, is set to strengthen IREDA’s global market presence. The landed cost (after hedging) is expected to be below 7%, making it more cost-effective than similar-tenure loans in the domestic market, the company stated through press release.
PSU Stock, Indian Renewable Energy Development Agency Ltd’s shares surges by 3% in early trade on Friday as the company has signed a facility agreement for raising External Commercial Borrowing (ECB) from SBI, Tokyo Branch for JPY 26 billion (Rs 1476 crore), including a Green Shoe Option of JPY 10 billion.
This five-year unsecured facility, with bullet payment at maturity, is set to strengthen IREDA’s global market presence. The landed cost (after hedging) is expected to be below 7%, making it more cost-effective than similar-tenure loans in the domestic market, the company stated through press release.
Commenting on the agreement, Shri Pradip Kumar Das, Chairman & Managing Director, IREDA, stated, “This facility enables us to diversify our resource base and optimize costs, enhancing our lending operations to support India’s renewable energy sector. The transaction reflects the strong confidence of global investors in IREDA’s financial stability and growth potential.”
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IREDA continues to enjoy international credit rating of ‘BBB-' long-term and 'A-3' short-term with Outlook ‘Stable’ from S&P Global, underscoring its highest standards of corporate governance and credibility in international markets, the release added.
The stock was trading 3% higher at Rs 166.75 on BSE and is trading neither in the oversold nor in the overbought zone, indicating the RSI of 58.4.
A RSI number below 30 indicates the stock is trading in the oversold zone; above 70 indicates it is trading in the overbought zone. On July 15, 2024, IREDA shares reached an all-time high of Rs 310 and a 52-week low of Rs 135.05 on March 27, 2024. In a year, the stock has gained 19% and in two weeks, 17.55%.
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