Five Banks Facilitate Green Loan to Fund Reliance’ REC Solar Acquisition

Reliance Industries (RIL) has availed $736 million equivalent green loans from five banks to fund its acquisition of Norway-headquartered solar cells, modules, and polysilicon manufacturer REC Solar Holdings.

The five lending banks were ANZ, Credit Agricole, DBS Bank, HSBC, and MUFG. The financing comprises a $250 million six-year term loan, a $150 million working capital facility, and a $336 million five-year bank guarantee facility.

International law firm Milbank advised the lenders concerning the green loan to finance Reliance’s acquisition of REC Solar.

Reliance New Energy Solar, a wholly-owned RIL subsidiary, acquired REC Solar Holdings from China National Bluestar Group for $771 million in October 2021.


Commenting on the transaction, Milbank’s Global Project, Energy & Infrastructure Finance partner John Dewar said, “The green loan financing represents the first green financing entered into by Reliance Industries and a significant green financing for Milbank as we head towards the end of the year.”

REC has regional hubs in North America, Europe, Australia, and Asia-Pacific. The company has three manufacturing facilities, two in Norway for solar-grade polysilicon production and one in Singapore manufacturing solar cells and modules.

The acquisition of REC Solar adds significant solar capacity for Reliance. Solar developers and module manufacturers believe Reliance Group’s recent solar acquisitions will help India provide an alternative to Chinese products. The transaction also accelerates Reliance’s expansion in Australia, Europe, the United States, and more widely in Asia.

In India, RIL plans to use REC’s technology at Dhirubhai Ambani Green Energy Giga Complex on 5,000 acres in Jamnagar. Initially, the complex will begin with a 4GW per year capacity and eventually grow to 10GW annually. Reliance will invest ₹750 billion (~$10 billion) in the Jamnagar facility to build an integrated solar PV, advanced energy storage battery, green hydrogen, and fuel cell manufacturing units.

RIL is expected to support REC’s expansion plans, including 2-3 GW cells and modules capacity in Singapore. In addition, a new 2 GW cells and module facility in France and a 1 GW module manufacturing facility in the US.