REC Limited Secures Green Loan of JPY 60.5 Billion for Sustainable Projects in India

REC Limited, a Maharatna Central Public Sector Enterprise and an NBFC under the Ministry of Power has secured a Green Loan of Japanese Yen (JPY) 60.536 billion. This funding aims to finance eligible green projects across India.

The green loan facility, enjoys an 80 percent guarantee by the Italian Export Credit Agency, SACE (Italy), under their innovative Push Strategy program.

Participating banks from across Asia, the USA, and Europe, including Crédit Agricole Corporate and Investment Bank, Bank of America, Citibank, KfW IPEX-Bank, and Sumitomo Mitsui Banking Corporation, have contributed to the loan facility as Mandated Lead Arrangers. Crédit Agricole Corporate and Investment Bank will play multiple roles, including Export Credit Agency Coordinator, Green Loan Coordinator, Documentation Bank, and Facility Agent.

For REC Limited, this green loan facility represents a strategic investment that aligns with its commitment to fostering sustainable growth, as outlined in the company’s Green Finance Framework. It reflects REC and its partners' dedication to supporting projects that adhere to rigorous environmental standards, promote renewable energy, and contribute to reducing carbon emissions throughout India.

Vivek Kumar Dewangan, Chairperson and Managing Director of REC, expressed optimism about the collaboration, stating, “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.”

Echoing this sentiment, Gautam Bhansali, Head of SACE – India and South Asia, remarked, “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.”

Franck Passillier, Senior Country Officer for India at Crédit Agricole Corporate and Investment Bank, emphasized the bank's dedication to sustainable development, stating, “The transaction exemplifies Crédit Agricole Corporate and Investment Bank’s unwavering dedication to fostering sustainable development, in line with our Bank’s leading position in global sustainable finance for more than a decade. Our strategic collaboration with REC underscores our steadfast commitment to advancing environmentally responsible initiatives and promoting the growth of sustainable financing within India’s promising market.”