Public infrastructure finance company REC Limited has availed a green loan of ¥60.5 billion (~$387.6 million) from SACE, an Italian export credit agency, to finance a slew of green projects in India.

This maiden green loan transaction in India also marks a first-of-its-kind successful collaboration between the two companies.

The green loan saw participation from Asian, European, and American banks such as Crédit Agricole Corporate and Investment Bank, Bank of America, Citibank, and KfW-IpexBank with Sumitomo Mitsui Banking Corporation as Mandated Lead Arrangers. CréditAgricole Corporate and Investment Bank acted as the ECA Coordinator, Green Loan Coordinator, Documentation Bank, and Facility Agent.

“Through this facility, SACE is committed to supporting projects in renewable energy, green mobility, and energy efficiency, enabling sustainable long-term growth in India,” said Gautam Bhansali, Head of SACE – India & South Asia.

The green facility benefits from an 80% SACE guarantee under its Push Strategy program. This facility is SACE’s first JPY-dominated loan transaction.

This investment, which reflects a growing momentum towards green financing, also aligns with REC’s Green Finance Framework to foster low-carbon growth in India.

“The successful transaction in this truly global facility is anticipated to pave the way for more such collaborations, further enhancing Indo-Italian business relationships in green energy financing and sustainable projects capabilities, as well as the global community’s support for sustainable development projects in India,” said Vivek Kumar Dewangan, Chairman & Managing Director, REC.

REC recorded a revenue of $1.44 billion for the third quarter of 2023 due to improved asset quality and increased lending rates.

In January 2024, the company issued its inaugural yen-denominated green bonds of ¥61.1 billion (~$390.03 million) to finance eligible renewable energy projects under its green finance framework and the Reserve Bank of India guidelines.

In December 2023, REC signed a €200 million (~$214.59 million) loan agreement with German bank KfW, committing to utilize the funds to undertake reforms in India’s distribution sector.