Strengthening its financial capabilities and reinforcing its global presence, Indian Renewable Energy Development Agency Limited (IREDA) has signed a Facility Agreement with State Bank of India’s (SBI) Tokyo Branch to raise External Commercial Borrowing (ECB) of JPY 26 billion. This agreement includes a Green Shoe Option of JPY 10 billion, marking a significant milestone in IREDA’s efforts to support India’s renewable energy sector.
The five-year unsecured loan facility will feature a bullet repayment at maturity, ensuring financial flexibility for IREDA. Notably, the landed cost of the funds, post-hedging, is expected to be below 7%, making it a more cost-effective option than similar-tenure loans available in the domestic market.
Speaking about the agreement, Pradip Kumar Das, Chairman & Managing Director, IREDA, emphasized the importance of this funding:
“This facility enables us to diversify our resource base and optimize costs, enhancing our lending operations to support India’s renewable energy sector. The transaction reflects the strong confidence of global investors in IREDA’s financial stability and growth potential.”
As a testament to its robust financial standing, IREDA maintains an international credit rating of ‘BBB-‘ (long-term) and ‘A-3’ (short-term) with a ‘Stable’ outlook from S&P Global. This rating highlights IREDA’s commitment to corporate governance, financial stability, and its credibility in international markets.
Strengthening India’s Renewable Energy Vision
IREDA plays a crucial role in advancing India’s clean energy transition by providing strategic financial solutions. This latest ECB agreement reinforces its commitment to accelerating renewable energy projects, promoting green financing, and attracting global investments to the sector.
