REC Secures Rs.3,200 Crore Loan to Fund Green Energy Projects

REC Ltd announced on Thursday that it has secured a green loan amounting to JPY 60.536 billion (approximately Rs 3,200 crore) to fund eligible clean energy projects. This green facility benefits from an 80% guarantee provided by the Italian export credit agency, SACE (Italy).

This announcement comes after REC Ltd issued its first yen-denominated green bonds worth 61.1 billion yen in January under its $10-billion global medium-term notes program.

Exploring the Japanese market for financing aligns with REC Ltd's strategy, as interest rates in Japan are generally lower compared to US-dollar-denominated loans. The company has set an ambitious target of achieving a green finance loan book of Rs 3 lakh crore by 2029-30.

In September 2023, REC Ltd revealed that it had engaged in discussions with renewable energy developers, leading to the signing of memoranda of understanding totaling approximately Rs 2.86 lakh crore. This indicates a significant step towards achieving its green finance objectives.