ReNew Energy Global Plc (NASDAQ:RNW) Q2 2024 Earnings Call Transcript

Nathan Judge: Okay. So if the gains are not very material. And also remember that most of the larger transactions were related to projects that are under construction. Right? So our Peak Power and our RTC projects, right. And those gains would be, well, commercial gains, but accounting gains are de minimis because they haven’t been actually selling of operating assets. That’s where you would see gains. So, so far, there’s not been much.

Angie Storozynski: Okay. And then lastly, and again, by now you probably see where I’m going with this. I’m trying to compare you to other renewable power developers. There’s been some differences in how, you know, that’s, and EBITDA are shown. So, you know, you guys do project financing and I’m just wondering if there is any reasons for your – for you to change that stance. Like, I don’t know, as the balance sheet grows, would you consider balance sheet financing? Again, any, any changes in how you finance a new build?

Sumant Sinha: Yes. So again, there, what happens is that, you know, obviously we have an existing portfolio, which is quite sizable. We have existing debt, which is quite sizable. So to change everything to balance sheet, it will take time, and it requires a certain type of market environment, which is relatively easy money policy type of market where the rates are lower. In which market you can obviously get transactions done by getting borrowing balance sheet. And then repaying the debt at the core levels. But given that market conditions are what they are, investors are very focused on getting security on specified assets. And then the lenders typically wouldn’t want to consolidate or have in their entities where they hold the security under construction risk.

Because then the risk weightage is for them also changes. So we are not moving to a balance sheet type of financing anytime soon. For us, this model really works. And most of the Indian context, the lenders are project finance lenders with specific assets. And they want the full security of that asset without sharing it with any other lenders. So from a bankruptcy remoteness point of view also, that is the preferred model in India. So it seems like we’ll have to sort of continue with that.

Angie Storozynski: Great. Thank you.

Operator: There are no further questions at this time. That does conclude our conference for today. Thank you for participating. You may now disconnect.