REC Limited Secures $200 Million Green Loan from Deutsche Bank AG

REC Limited, a state-run entity, announced that the company has secured a green loan amounting to JPY 31.96 billion (equivalent to $200 million) from Deutsche Bank AG, GIFT City branch. This marks a significant step towards financing sustainable development in India.

This green facility is a pioneering collaboration between an Indian government entity and Deutsche Bank. It aims to fund projects that adhere to stringent environmental standards, promote the adoption of renewable energy, and contribute to reducing carbon emissions nationwide. Notably, this initiative represents one of the first JPY-denominated green loans executed by Deutsche Bank AG, GIFT City, highlighting its innovative approach to sustainable finance.

Commenting on this initiative, the Chief Managing Director of REC, Vivek Kumar Dewangan, said, “This successful transaction is in line with REC’s commitment to enhance its green energy financing and sustainable projects capabilities as well as the global community’s support for sustainable development projects in India. This benchmark transaction is anticipated to pave the way for more such collaborations in future, which can help in achieving the nation’s goals in green space financing.”

The CEO of Deutsche Bank Group India, Kaushik Shaparia, said, “Our collaboration with REC underscores our steadfast commitment to advancing environmentally responsible initiatives and promoting sustainable financing within India. This transaction reinforces Deutsche Bank’s expertise in green financing, demonstrating our ability to support clients in their transformation towards a carbon-free future.”

In FY 2024, REC Ltd has approved loans totalling ₹3.59 trillion, with ₹1.36 trillion allocated specifically for renewable energy projects. The company intends to raise the proportion of renewable energy in its loan portfolio to 30% by 2030, up from the current 10%.

About REC Ltd

REC is a ‘Maharatna’ company under the Ministry of Power, Government of India, and is registered with the RBI as a Non-Banking Finance Company (NBFC), Infrastructure Financing Company (IFC) and Public Financial Institution (PFI). The company focuses on financing projects across the entire power sector value chain, right from generation to distribution.

On July 11, 2024, the share price of REC Ltd opened at ₹632.95, touching the day’s high at ₹643.70, as of 11:16 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.