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New Delhi: The Indian Renewable Energy Development Agency Limited (IREDA) has signed a facility agreement with the State Bank of India’s (SBI) Tokyo branch to raise External Commercial Borrowing (ECB) amounting to JPY 26 billion (About Rs 1,476 crore). The agreement, finalized on Friday, includes a Green Shoe Option of JPY 10 billion, enhancing IREDA’s financial flexibility and global funding avenues.
The five-year unsecured facility comes with a bullet payment at maturity, with the landed cost—post-hedging—expected to be below 7 percent. This competitive rate positions the borrowing as a cost-effective alternative to similar domestic loans of the same tenure.
Speaking on the development, IREDA Chairman & Managing Director (CMD) Pradip Kumar Das highlighted the significance of the agreement in strengthening the agency’s financial capabilities. “This facility enables us to diversify our resource base and optimize costs, thereby enhancing our lending operations to support India’s renewable energy sector. The transaction reflects the strong confidence of global investors in IREDA’s financial stability and growth potential,” he stated.
IREDA continues to maintain a strong global financial standing, holding an international credit rating of ‘BBB-’ for the long term and 'A-3' for the short term, with a ‘Stable’ outlook from S&P Global. This underscores the organization’s commitment to high standards of corporate governance and financial credibility in international markets.
The move aligns with IREDA’s broader strategy to expand its funding sources and reinforce its pivotal role in financing India’s renewable energy transition.
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