REC Limited has secured green loan totaling JPY 60.536 billion from SACE to support eligible green projects across the country. SACE, Italy, an innovative export credit agency, offers an 80 per cent guarantee to the green facility as part of their push strategy programme. The partnership between SACE and an Indian government agency is innovative and the first of its type to be successful. This financing facility establishes a benchmark for green funding in the Indian public sector, showcasing an increasing focus on sustainable financing. It’s also SACE’s first loan transaction in Japanese Yen and its first green loan arrangement in India.
The green loan involves participation from banks across Asia, the USA, and Europe, with Crédit Agricole Corporate and Investment Bank, Bank of America, Citibank, KfW-Ipex Bank, and Sumitomo Mitsui Banking Corporation serving as mandated lead arrangers. Crédit Agricole Corporate and Investment Bank are acting as the ECA coordinator, green loan coordinator, documentation bank, and facility agent.
Recently, in April 2024, REC Limited and Chenab Valley Power Project Private Limited entered into an agreement to provide financial support through a term loan of Rs 18.69 billion.
