REC Limited, a Maharatna Central Public Sector Enterprise and a prominent NBFC under the Ministry of Power, has secured a noteworthy Green Loan totaling Japanese Yen (JPY) 60.536 billion. This financial backing is aimed at financing eligible green projects in India, marking a pivotal step towards sustainable development within the country.
The Green Loan, supported by an 80% guarantee from the Italian Export Credit Agency, SACE, under their innovative Push Strategy program, represents a pioneering collaboration between an Indian government entity and SACE. This arrangement not only underscores REC’s commitment to sustainable financing but also sets a new standard in the Indian public sector landscape for similar green financing transactions.
This milestone also marks SACE’s first JPY-denominated loan transaction and its inaugural green loan transaction in India, highlighting the increasing commitment to sustainable financing initiatives.
Participating in the green loan are 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, acting as Mandated Lead Arrangers. Notably, Crédit Agricole Corporate and Investment Bank assumes multiple roles, including the Export Credit Agency Coordinator, Green Loan Coordinator, Documentation Bank, and Facility Agent.
For REC Limited, this green loan represents a strategic investment reaffirming its dedication to fostering sustainable growth, in alignment with the company’s Green Finance Framework. It underscores REC and its partners’ commitment to supporting projects that adhere to stringent environmental standards, promote renewable energy, and contribute to reducing carbon emissions across India.
In response to the collaboration, REC’s Chairperson & Managing Director, Shri Vivek Kumar Dewangan, expressed anticipation for further collaborations, strengthening Indo-Italian business ties in green energy financing and sustainable projects.
Gautam Bhansali, Head of SACE – India & South Asia, highlighted SACE’s commitment to supporting projects in renewable energy, green mobility, and energy efficiency, facilitating sustainable long-term growth in India through the Green Push Strategy transaction with REC.
Franck Passillier, Senior Country Officer for India at Crédit Agricole Corporate and Investment Bank, emphasized the bank’s steadfast commitment to fostering sustainable development, reflecting its leading position in global sustainable finance. The collaboration with REC underscores their dedication to advancing environmentally responsible initiatives within India’s burgeoning market.
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