REC Avails 60.5 Billion Yen Green Loan Backed By Italy’s SACE

REC Avails SACE-Covered 60.5 Billion Yen Green Loan

REC Limited, recently availed 60.536 billion a green loan in Japanese Yen (JPY) to finance eligible green projects in India. The green loan facility benefits from an 80% guarantee by the Italian Export Credit Agency, SACE (Italy) under their innovative “Push Strategy program”.

This arrangement between an Indian government entity REC and SACE an Italian insurance-financial company is claimed to be a first-of-its-kind collaboration. The green loan facility received a benchmark in the Indian public sector landscape, for similar green financing transactions.

The facility 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, the 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, in alignment with the company’s green finance framework. 

Commenting on the collaboration, Chairperson and Managing Director, REC, Vivek Kumar Dewangan said, “The successful transaction in this truly global facility is anticipated to pave the 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 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 supporting projects in renewable energy, green mobility, and energy efficiency, enabling sustainable long-term growth in India.”