Indian Renewable Energy Development Agency Limited (IREDA), a government-owned lender, has secured a loan facility from the State Bank of India (SBI) Tokyo amounting to approximately $172 million. This includes a greenshoe option of around $66.2 million through external commercial borrowings. The loan is structured as a five-year unsecured facility with a bullet repayment at maturity. Reportedly, the landed cost after hedging is expected to remain below 7 per cent.
The funds raised through this facility will be utilised to diversify IREDA’s resource base and optimise borrowing costs, thereby strengthening its financial position. Additionally, this move aligns with IREDA’s objective to enhance lending support for renewable energy projects in India. By tapping into international financial markets, the agency aims to expand its global presence while ensuring cost-efficient capital availability for green energy initiatives.
Earlier this month, IREDA raised Rs 9.10 billion through privately placed subordinated Tier-II bonds with a 10-year tenor at an annual coupon rate of 7.74 per cent, aiming to enhance liquidity, strengthen its net worth and improve its capital to risk-weighted assets ratio.
