REC Steps Up On Green Financing With 37.3% Growth In Renewable Energy Funding

REC Raises $500 Mn To Finance Clean Energy Projects Through Green Bonds

REC Limited, a maharatna CPSE under the Ministry of Power and a leading NBFC, has disbursed loans worth ₹90,955 crore, up 20.10% year-on-year for the half year ended September 30, 2024. The quantum of renewable energy loans grew 92.68% year-on-year to ₹11,297 crore. Notably, the firm raised the largest ever tranche of green binds from India recently with a $500 million issue.

In Q2 FY24-25, REC disbursed loans amounting to Rs 47,303 crore, which is higher by 13.71% compared to Rs 41,598 crore disbursed in Q2 FY23-24. Of this, renewable energy loans aggregated to Rs 5,946 crore, up 37.35% YoY.

In the past two years, REC, along with PFC and IREDA has emerged as a key part of the financing puzzle for renewable energy developers in India with the possibility of large scale financing for green projects. The firm is now financing the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Pump Storage projects, Green Hydrogen, Green Ammonia projects etc.

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The firm has also been selected as to play a key strategic role in the flagship schemes of the Government for the power sector and has been nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme which resulted in strengthening of last mile distribution system, 100% village electrification and household electrification in the country. REC has also been made the nodal agency for certain States and Union Territories for the Revamped Distribution Sector Scheme (RDSS). REC has also been given the responsibility of PM Surya Ghar Muft Bijli Yojna from Central Government. The loan book of REC stands at ₹ 5.30 lakh crore and Net Worth at Rs. ₹ 72,351 crore as on 30th June, 2024.

As the loanbook expands and seasons for lending to green energy projects, the NBFC is set to provide a key indicator for the health of the overall green energy ecosystem in the country as well.

REC Raises $500 Mn Through Green Bonds

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