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29/04/24 14:56 PM IST

REC Limited avails SACE-Covered Green Loan for ~ 60.5 Billion Japanese Yen

In News
  • REC Limited, a Maharatna Central Public Sector Enterprise 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.
Green loan facility 
  • 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.
About REC Limited
  • REC is a 'Maharatna' Central Public Sector Enterprise under the Ministry of Power, and is registered with RBI as Non-Banking Finance Company (NBFC), and Infrastructure Financing Company (IFC).
  • REC finances the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Pumped Storage Projects, Green Hydrogen and Green Ammonia projects.
  • Recently, REC has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institution, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel and Refinery.
  • REC Ltd. provides loans of various maturities to State, Central and Private Companies for creation of infrastructure assets in the country. REC Ltd. continues to play a key strategic role in the flagship schemes of the Government for the power sector and has been a nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme which resulted in strengthening of last-mile distribution system, 100% village electrification and household electrification in the country.
Source- PIB

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