REC Limited Avails SACE-Covered Green Loan For 60.5 Billion Japanese Yen
First Yen-denominated loan transaction in India and First Green Loan Transaction in India, of Italian Export Credit Agency SACE
In a significant step towards sustainable development in India, REC Limited, a Maharatna Central Public Sector Undertaking and leading NBFC under the Ministry of Power, has successfully availed a Green Loan of Japanese Yen (JPY) 60.536 billion to finance eligible green projects in India. The green loan facility benefits from an 80% guarantee by Italian Export Credit Agency, SACE (Italy) under their innovative Push Strategy programme. The arrangement between SACE and REC is a breakthrough and a first-of-its-kind collaboration between an Indian government entity and SACE.
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 has loan participation from banks across Asia, USA and Europe, namely Crédit Agricole Corporate and Investment Bank, Bank of America, Citibank, KfW IPEX-Bank and Sumitomo Mitsui Banking Corporation as Mandated Lead Arrangers. Crédit 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 foster 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.
Commenting on the collaboration, Chairperson & Managing Director, REC, Shri Vivek Kumar Dewangan said: “The successful transaction in this truly global facility is anticipated to pave 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 Shri Gautam Bhansali commented: “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 support projects in renewable energy, green mobility and energy efficiency, enabling sustainable long-term growth in India.”
Senior Country Officer for India, Crédit Agricole Corporate and Investment Bank, Mr. Franck Passillier said: “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.”
