On Thursday, Rural Electrification Corporation Limited (REC) a state-owned non-banking financial company under the Ministry of Power, announced that it has secured a substantial green loan amounting to 60.5 billion Japanese Yen (equivalent to Rs 3,250 crore) from SACE, Italy’s export credit agency. The loan aims to finance eligible green projects in India, aligning with the company’s commitment to sustainable development and promoting eco-friendly initiatives within the country.

The green loan arrangement between SACE and REC marks a groundbreaking collaboration, being the first of its kind between an Indian government entity and the Italian export credit agency. This green loan facility sets a benchmark in the Indian public sector landscape for similar sustainable financing transactions, highlighting a growing commitment to eco-friendly initiatives.

Furthermore, this facility represents SACE’s first Japanese Yen-denominated loan transaction and its inaugural green loan transaction in India. The green loan saw participation from a diverse group of international banks, including Credit Agricole Corporate and Investment Bank, Bank of America, Citibank, KfW IPEX-Bank, and Sumitomo Mitsui Banking Corporation, acting as Mandated Lead Arrangers. Credit Agricole Corporate and Investment Bank will serve as the Export Credit Agency Coordinator, Green Loan Coordinator, Documentation Bank, and Facility Agent.

Related Stories

BHEL Ties Up With HIMA Middle East FZE To Enter Railway Signalling Business

Senior IAS Pallavi Jain Govil Made the New Directorate General of Hydrocarbon

NTPC & NPCIL Come Together For Nuclear Power Projects

NTPC’s Latest Girl Empowerment Mission To Help Over 10,000 Young Girls

NLC Indian Limited Gets 810MV Solar Project By RRVUNL

PSBs Instructed by NCLAT Not to Use Coercive Action Against IL&FS or Its Board

Arvind Kumar Made Director, Refineries, in Indian Oil Corporation

Sivakumar V Vepakomma Appointed as SECI’s Director

This loan facility is a strategic investment for REC Limited, reinforcing its commitment to fostering sustainable growth and aligning with the company’s Green Finance Framework. It demonstrates the dedication of REC and its partners in supporting projects that meet stringent environmental standards, promote renewable energy, and contribute to reducing carbon emissions across India. Additionally, it reflects the growing momentum towards green financing and the collective efforts of stakeholders to address environmental challenges.

Vivek Kumar Dewangan, Chairperson and Managing Director of REC, expressed his belief that this successful transaction will pave the way for more such collaborations, further enhancing Indo-Italian business relationships in green energy financing and sustainable projects. He also stated that it would help boost the global community’s support for sustainable development projects in India.

Gautam Bhansali, Head of SACE – India & South Asia, proudly highlighted SACE’s partnership with REC for this innovative “Green Push Strategy” transaction, which is the first of its kind being executed in India. Through this facility, SACE is committed to supporting projects in renewable energy, green mobility, and energy efficiency, enabling sustainable long-term growth in India.

As of December 31, 2023, REC’s loan book stood at an impressive Rs 4.97 lakh crore, with a robust net worth of Rs 64,787 crore. According to the statement, the green loan facility secured by REC benefits from an 80 percent guarantee provided by the Italian export credit agency SACE under their innovative Push Strategy program. This guarantee from SACE adds an extra layer of security and confidence to the green loan facility, enabling REC to pursue sustainable projects with greater financial backing and support.