REC Ltd. Secures Historic 31.96 Billion JPY Green Loan from Deutsche Bank

REC Ltd. has secured a green loan of 31.96 Billion JPY from Deutsche Bank to finance green projects in India. This marks a pioneering collaboration between an Indian PSU and Deutsche Bank, setting a benchmark for sustainable financing in the public sector.

Devdiscourse News Desk | Updated: 11-07-2024 16:17 IST | Created: 11-07-2024 16:17 IST
REC Ltd. Secures Historic 31.96 Billion JPY Green Loan from Deutsche Bank
Representative Image (Photo- Image Credit: ANI
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REC Ltd., a power financing public sector undertaking (PSU), has successfully obtained a green loan of 31.96 billion Japanese Yen (JPY)—equivalent to 200 million USD—from Deutsche Bank AG to finance green projects in India. The company highlighted that the green loan is a pioneering collaboration between a government entity in India and Deutsche Bank AG's GIFT City branch, establishing a new benchmark in sustainable financing for the Indian public sector.

This collaboration underscores REC Ltd.'s commitment to projects that meet stringent environmental standards, support renewable energy, and contribute to reducing carbon emissions in India. The company emphasized the loan signifies growing momentum towards green financing and the collective efforts of stakeholders to tackle environmental challenges.

Vivek Kumar Dewangan, IAS, CMD of REC, stated, "This successful transaction aligns with REC's commitment to enhancing its green energy financing and sustainable projects capabilities, and reflects global support for sustainable development projects in India. We anticipate this benchmark transaction will pave the way for more such collaborations in the future, helping achieve the nation's green financing goals."

REC Ltd. is a 'Maharatna' company under the Ministry of Power, Government of India, registered with the RBI as a Non-Banking Finance Company (NBFC). It finances the Power-Infrastructure sector including Generation, Transmission, Distribution, and Renewable Energy projects.

Additionally, the company has diversified into Non-Power Infrastructure sectors such as Roads, Metro Rail, Airports, and IT Communication among others. Deutsche Bank India's CEO, Kaushik Shaparia, noted that this collaboration reaffirms the bank's dedication to environmentally responsible initiatives and sustainable financing, demonstrating their support for clients in transitioning to a carbon-free future.

(With inputs from agencies.)

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