In a significant move toward sustainable development within India, REC Limited, a prominent Central Public Sector Enterprise and leading NBFC under the Ministry of Power, has successfully secured a Green Loan of Japanese Yen (JPY) 60.536 billion. This financing is earmarked for eligible green projects across India. Notably, the green loan enjoys an 80% guarantee from the Italian Export Credit Agency, SACE, under their innovative Push Strategy program, marking a pioneering collaboration between an Indian government entity and SACE.

This milestone in green financing within the Indian public sector sets a precedent for similar initiatives, underscoring a growing dedication to sustainable finance. Furthermore, it represents SACE’s inaugural JPY-denominated loan transaction and its first green loan venture in India.

The Green Loan sees participation from banks spanning Asia, the USA, and Europe, including Crédit Agricole Corporate and Investment Bank, Bank of America, Citibank, KfW IPEX-Bank, and Sumitomo Mitsui Banking Corporation, serving as Mandated Lead Arrangers. Crédit Agricole Corporate and Investment Bank will serve multiple roles including Export Credit Agency Coordinator, Green Loan Coordinator, Documentation Bank, and Facility Agent.

For REC Limited, this loan facility is a strategic investment that reinforces its commitment to driving sustainable growth in line with its Green Finance Framework. It underscores REC’s and its partners’ dedication to supporting projects that adhere to stringent environmental standards, promote renewable energy, and contribute to carbon emissions reduction across India. Moreover, it reflects the growing momentum toward green financing and the collaborative efforts of stakeholders to tackle environmental challenges.

Commenting on the collaboration, Chairperson & Managing Director, REC, Shri Vivek Kumar Dewangan 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. It will also help boost the global community’s support for sustainable development projects in India.”

Head of SACE – India & South Asia Shri Gautam Bhansali commented: “SACE is proud to partner with REC for this ‘Green Push Strategy’ transaction, which is an innovative and first-in-its-kind structure being 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.”

Senior Country Officer for India, Crédit Agricole Corporate and Investment Bank, Mr. Franck Passillier said: “The transaction exemplifies Crédit 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.”