A MoU has been signed between Indian Renewable Energy Development Agency (IREDA) and the bank of Maharashtra to encourage and make loan syndication and co-lending easier for a range of renewable energy projects across the country. The MoU encompasses a number of services, such as co-lending and co-origination assistance for clean energy projects, loan syndication and underwriting, management of trust and retention accounts for IREDA borrowers, and a dedication to creating stable fixed interest rates for IREDA borrowings over a period of three to four years. In accordance with the MoU, the bank of Maharashtra is authorised to invest in bonds issued by IREDA.
The objective of the collaboration is to create a strong financial ecosystem for green energy projects, so that more communities and industries can access clean and sustainable energy. The collaboration further highlights the importance for financial institutions and government organisations to collaborate in order to meet India’s objective of having net zero emissions by 2070.
Recently, in September 2023, IREDA, Union Bank of India, and Bank of Baroda signed a MoU to expedite the growth of clean power in India and to co-finance and syndicate loans for a variety of clean energy projects that utilise both well-established and emerging renewable energy technology.
In the same month, IREDA and India Infrastructure Finance Company Limited signed a MoU to co-finance, co-originate, and syndicate loans for all types of renewable energy projects, including small hydro projects.