Public infrastructure finance company REC Limited has secured a green loan of JPY31.96 billion (~$200 million) from Deutsche Bank‘s GIFT City branch to fund green projects in India.

This green financing is one of the first JPY-denominated green loan transactions for Deutsche Bank at GIFT City.

According to REC, this facility underscores its commitment, along with its partners, to support projects that adhere to stringent environmental standards, promote renewable energy, and contribute to reducing carbon emissions across India.

Vivek Kumar Dewangan, IAS, CMD of REC, said, “This successful transaction aligns with REC’s dedication to enhancing green energy financing and sustainable project capabilities, as well as the global community’s support for sustainable development initiatives in India. This benchmark transaction is expected to pave the way for more such collaborations in the future, aiding in the achievement of the nation’s goals in green financing.”

REC recorded a total income of ₹475.71 billion (~$5.7 billion) in 2024, a 20% year-over-year (YoY) increase. The company’s net profit for FY 2024 surged by 27% YoY to ₹141.45 billion (~$1.69 billion). A significant portion of the total approved loans, amounting to ₹1.37 trillion (~$16.41 billion), accounted for the renewable energy sector, showcasing a substantial YoY growth of 538.79%.

In an interview with Mercom India, V K Singh, Director (Projects) at REC Limited, spoke about the company’s plans to increase its renewable energy loan portfolio from 6% to 30% by FY30.

In December 2023, REC signed a €200 million (~$217.23 million) loan agreement with German bank KfW, committing to utilize the funds to undertake reforms in India’s distribution sector.

In the same month, the company’s board of directors approved an equity investment of ₹142.5 million (~$1.7 million) in Hindustan Power Exchange (HPX). The investment constitutes 19% of the proposed equity share capital of ₹750 million (~$9.02 million) of HPX.