REC Secures Rs 3,250 Crore Green Loan From Italian Export Credit Agency SACE
REC secures Rs 3,250 crore green loan from Italian export credit agency SACE to finance green projects in India, marking a breakthrough collaboration and setting a benchmark in the Indian public sector landscape for green financing transactions.
State-owned REC on Thursday said it has availed a green loan of 60.5 billion Japanese Yen (Rs 3,250 crore) from Italian export credit agency SACE to finance green projects in India.
According to a statement, REC Ltd, an NBFC under the Ministry of Power, has successfully availed a Green Loan of Japanese Yen 60.536 billion to finance eligible green projects in India.
The arrangement between SACE and REC is a breakthrough and a first-of-its-kind collaboration between an Indian government entity and SACE, it added.
The green loan facility sets a benchmark in the Indian public sector landscape for similar green financing transactions, highlighting a growing commitment to sustainable financing.
The facility also marks SACE’s first JPY-denominated loan transaction and first green loan transaction in India.
The green loan saw participation from banks across Asia, the US and Europe, namely Credit Agricole Corporate and Investment Bank, Bank of America, Citibank, KfW IPEX-Bank and Sumitomo Mitsui Banking Corporation as Mandated Lead Arrangers.
Credit Agricole Corporate and Investment Bank would be acting as the Export Credit Agency Coordinator, Green Loan Coordinator, Documentation Bank and Facility Agent.
The loan facility is a strategic investment for REC Limited, which reinforces its commitment to fostering sustainable growth, in alignment with the company’s Green Finance Framework.
The green loan demonstrates the dedication of REC and its partners in supporting projects which meet rigorous environmental standards, promote renewable energy and contribute to reducing carbon emissions throughout India.
Additionally, it also reflects the growing momentum towards green financing and the collective efforts of stakeholders to address environmental challenges.
REC Chairperson and MD Vivek Kumar Dewangan said, 'The successful transaction in this truly global facility is anticipated to pave the way for more such collaborations, further enhancing Indo-Italian business relationships in green energy financing and sustainable projects. It will also help boost the global community’s support for sustainable development projects in India'.
Head of SACE – India & South Asia Gautam Bhansali said, 'SACE is proud to partner with REC for this 'Green Push Strategy’ transaction, which is an innovative and first-in-its-kind structure 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'.
The loan book of REC stands at Rs 4.97 lakh crore and net worth at Rs 64,787 crore as of Dec. 31, 2023.
According to the statement, the green loan facility benefits from an 80% guarantee by the Italian export credit agency SACE under their innovative Push Strategy programme.