New Delhi [India], July 11 : Rural Electrification Corporation (REC) a power financing PSU, has successfully availed a green loan of 31.96 Billion Japanese Yen (JPY) (equivalent to USD 200 million) from Deutsche Bank AG to finance eligible green projects in India.
The company stated that this green facility is a first of its kind successful collaboration between an Indian government entity and Deutsche Bank AG, GIFT City branch. It also sets a benchmark in the Indian public sector landscape for similar green financing transactions, highlighting a growing commitment to sustainable financing.
"This facility demonstrates dedication of REC Limited and its partners for supporting projects that meet rigorous environmental standards, promote renewable energy and contribute to reducing carbon emissions throughout India" said the company.
Additionally, the company added that the loan agreement also reflects the growing momentum towards green financing and the collective efforts of stakeholders to address environmental challenges.
"This successful transaction is in line with REC's commitment to enhance its green energy financing and sustainable projects capabilities as well as the global community's support for sustainable development projects in India. This benchmark transaction is anticipated to pave way for more such collaborations in future which can help in achieving nation's goals in green space financing" said Vivek Kumar Dewangan, IAS, CMD, REC.
REC is a 'Maharatna' company under the administrative control of the Ministry of Power, Government of India, and is registered with RBI as Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC).
The company is 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.
"Our collaboration with REC underscores our steadfast commitment to advancing environmentally responsible initiatives and promoting sustainable financing within India. This transaction reinforces Deutsche Bank's expertise in green financing, demonstrating our ability to support clients in their transformation towards a carbon-free future" said Kaushik Shaparia, CEO, Deutsche Bank Group, India.
Recently the company also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institution, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel, Refinery, etc.
It provides loans of various maturities to State, Central and Private Companies for creation of infrastructure assets in the country.
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