In a significant step towards sustainable development in India, REC Limited, a leader in the Indian power sector, has successfully availed a SACE-Covered Green Loan for JPY 60.536 Billion to finance Eligible Green Projects in India. This strategic investment reinforces REC's commitment to foster sustainable growth, in alignment with the Company's Green Finance Framework.
The green facility benefits from an 80% guarantee by Italian Export Credit Agency, SACE (Italy) under their innovative Push Strategy programme. It is a breakthrough and first of its kind successful collaboration between an Indian government entity and SACE. This 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 Cr'dit Agricole Corporate and Investment Bank, Bank of America, Citibank, KfW-IPEX Bank and Sumitomo Mitsui Banking Corporation as Mandated Lead Arrangers with Cr'dit Agricole Corporate and Investment Bank acting as the ECA Coordinator, Green Loan Coordinator, Documentation Bank and Facility Agent.
This facility demonstrates REC Limited's and its partners' dedication to supporting projects that 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.
Commenting on this occasion, Vivek Kumar Dewangan, IAS, Chairman & Managing Director, REC said, "The successful transaction in this truly global facility is anticipated to pave way for more such collaborations, further enhancing Indo-Italian business relationships in green energy financing and sustainable projects capabilities, as well as the global community's support for sustainable development projects in India."
Gautam Bhansali, Head of SACE " India & South Asia, commented, "SACE is proud to partner with REC for this "Green Push Strategy"transaction, which is an innovative and first in its kind structure executed in India. Through this facility, SACE is committed to support projects in renewable energy, green mobility and energy efficiency, enabling sustainable long-term growth in India."
Franck Passillier, Senior Country Officer for India, Cr'dit Agricole Corporate and Investment Bank, said, "The transaction exemplifies Cr'dit Agricole Corporate and Investment Bank's unwavering dedication to fostering sustainable development, in line with our Bank's leading position in global sustainable finance for more than a decade. Our strategic collaboration with REC underscores our steadfast commitment to advancing environmentally responsible initiatives and promoting the growth of sustainable financing within India's promising market."
