New Delhi, March 28 – The Indian Renewable Energy Development Agency (IREDA), a public sector enterprise under the Ministry of New and Renewable Energy, has announced the securing of an external commercial borrowing (ECB) facility worth 26 billion Japanese Yen from the Tokyo branch of the State Bank of India (SBI). The facility also includes a green shoe option of 10 billion Yen.
In an official statement released on Friday, IREDA stated that the five-year unsecured loan facility is expected to enhance the agency’s presence in global financial markets. As per agency report, the total landed cost of the loan, after hedging, is anticipated to remain below seven percent, making it more cost-effective compared to similar-term borrowings in the domestic market.
Pradip Kumar Das, Chairman and Managing Director of IREDA, noted that this loan arrangement will allow the organization to diversify its funding sources, optimize borrowing costs, and expand its lending operations aimed at supporting India’s renewable energy sector.
IREDA, a non-banking financial institution, plays a key role in financing renewable and sustainable energy projects across India. The latest agreement with SBI’s Tokyo branch marks another step in the agency’s efforts to tap into international funding avenues to promote green energy growth.
