IREDA secures JPY 26B loan facility from SBI’s Tokyo branch

State-owned Indian Renewable Energy Development Agency Ltd (IREDA) on Friday said it has secured a 26 billion Japanese Yen External Commercial Borrowing facility from SBI's Tokyo Branch, including a green shoe option of 10 billion Japanese Yen.

This five-year unsecured facility is set to strengthen IREDA's global market presence, the company said in a statement.

"IREDA has signed a facility agreement today for raising external Commercial Borrowing (ECB) from SBI, Tokyo Branch for JPY 26 billion, including a green shoe option of JPY 10 billion. The landed cost (after hedging) is expected to be below 7%, making it more cost-effective than similar-tenure loans in the domestic market," it said.

The company's Chairman and Managing Director, Pradip Kumar Das, said the facility will enable the company to diversify its resource base and optimise costs, enhancing our lending operations to support India's renewable energy sector.

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IREDA is a non-banking financial institution under the Ministry of New and Renewable Energy.

“This facility enables us to diversify our resource base and optimize costs, 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,” said Pradip Kumar Das, Chairman and Managing Director of IREDA.

The financing arrangement comes as IREDA continues to maintain its international credit rating of ‘BBB-' long-term and 'A-3' short-term with a ‘Stable’ outlook from S&P Global.