Government-owned lender Indian Renewable Energy Development Agency (IREDA) has announced a 27% rise in loan approvals for the financial year (FY) 2025, as per provisional data.

IREDA’s loan approvals stood at ₹474.53 billion (~$5.5 billion) in FY 2025 compared to ₹373.54 billion (~$4.3 billion) in FY 2024.

In the previous year (FY24), the year-over-year growth in loan approvals was 14.63%.

Its loan disbursement also increased to ₹301.68 billion (~$3.5 billion) from ₹250.89 billion (~$2.9 billion) in FY 2024, rising 20% year-over-year (YoY).

The YoY growth in loan disbursements in the previous year was 15.94%.

The agency’s loan book outstanding stood at ₹762.5 billion (~$8.9 billion), a 28% YoY growth from ₹596.9 billion (~$6.9 billion).

Pradip Kumar Das, Chairman and Managing Director, IREDA, said, “IREDA’s consistent growth in loan sanctions, disbursements, and loan book reflects our strong commitment to financing renewable energy projects. We remain committed to supporting India’s clean energy transition through innovative and accessible financing solutions.”

IREDA reported a profit after tax of ₹4.25 billion (~$49.52 million) during the third quarter of FY 2025, growing 27% year-over-year. It recorded ₹16.99 billion (~$197.8 million) in revenue from operations, a 35.5% increase over ₹12.53 billion (~$145.9 million) from the same period last year.

As of December 2024, solar sector received largest share of loans disbursed by IREDA at 26%, followed by wind with 18.4%.

Recently, IREDA raised ₹9.1 billion (~$106.16 million) by issuing privately placed subordinated Tier II bonds. This financing is for a 10-year tenure at an annual coupon rate of 7.74%. The issuance of Tier-II Bonds aims to tap into the current financial market’s liquidity and support the company’s borrowing plan.

IREDA also issued its first-ever perpetual bonds worth ₹12.47 billion (~$144.5 million) at an annual coupon rate of 8.4%. By issuing the bonds, IREDA aims to enhance its Tier-I capital, thereby strengthening its financial foundation.

In January this year, the lender announced plans to raise ₹50 billion (~$588.24 million) through a qualified institutional placement (QIP) of equity shares. The QIP aims to help meet India’s increasing demand for green energy financing.