IREDA Secures JPY 26 Billion ECB Facility from SBI Tokyo

Indian Renewable Energy Development Agency Limited (IREDA) has signed a Facility Agreement today for raising External Commercial Borrowing (ECB) from SBI, Tokyo Branch for JPY 26 billion, including a Green Shoe Option of JPY 10 billion.

This five-year unsecured facility, with bullet payment at maturity, is set to strengthen IREDA’s global market presence. The landed cost (after hedging) is expected to be below 7%, making it more cost-effective than similar-tenure loans in the domestic market.

Commenting on the agreement, Pradip Kumar Das, Chairman & Managing Director, IREDA, stated, “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.”

IREDA continues to enjoy an international credit rating of ‘BBB-‘ long-term and ‘A-3’ short-term with Outlook ‘Stable’ from S&P Global, underscoring its highest standards of corporate governance and credibility in international markets.

Earlier, the government entity had launched its first ever issue oif Perpetual Bonds for an amount of Rs 1247 crores at an annual coupon rate of 8.40%. This came after IREDA’s board decided to hike the borrowing limit for FY25 to Rs 29,200 crore from Rs 24,200 crore.