REC Secures $200 Million Green Loan from Deutsche Bank – EQ
In Short : REC secures a $200 million green loan from Deutsche Bank. This funding will support REC’s renewable energy projects, promoting sustainable development and contributing to India’s green energy goals.
In Detail : This facility marks the first successful collaboration between an Indian government entity and Deutsche Bank AG’s GIFT City branch, setting a new benchmark for green financing in the Indian public sector.
In a significant step towards sustainable development, REC Limited, a leader in the Indian power sector, has secured a green loan of JPY 31.96 billion (equivalent to USD 200 million) from Deutsche Bank AG’s GIFT City branch. This investment supports REC’s commitment to fostering sustainable growth under its Green Finance Framework.
This facility marks the first successful collaboration between an Indian government entity and Deutsche Bank AG’s GIFT City branch, setting a new benchmark for green financing in the Indian public sector. It also represents one of the first JPY-denominated green loan transactions for Deutsche Bank AG GIFT City, highlighting the growing emphasis on sustainable financing.
The loan will fund projects that adhere to stringent environmental standards, promote renewable energy, and help reduce carbon emissions across India. This initiative reflects the increasing momentum towards green financing and the collective efforts of stakeholders to address environmental challenges.
Commenting on the occasion, Vivek Kumar Dewangan, IAS CMD of REC, said, “This successful transaction aligns with REC’s commitment to enhancing green energy financing and sustainable project capabilities. It also demonstrates the global community’s support for sustainable development projects in India. We anticipate that this benchmark transaction will pave the way for future collaborations, advancing our nation’s goals in green financing.”
Kaushik Shaparia, CEO of Deutsche Bank Group India, added, “Our collaboration with REC underscores our steadfast commitment to promoting environmentally responsible initiatives and sustainable financing within India. This transaction reinforces Deutsche Bank’s expertise in green financing and our ability to support clients in their transition to a carbon-free future.”
REC is a ‘Maharatna’ company under the Ministry of Power, Government of India, and is registered with RBI as a Non-Banking Finance Company (NBFC), Public Financial Institution (PFI), and Infrastructure Financing Company (IFC). REC finances the entire power infrastructure sector, including generation, transmission, distribution, renewable energy, and new technologies such as electric vehicles, battery storage, pump storage projects, green hydrogen, and green ammonia. REC has diversified into the non-power infrastructure sector, financing roads, metro rail, airports, IT communication, social and commercial infrastructure, and more. REC continues to play a key strategic role in flagship government schemes like SAUBHAGYA, DDUGJY, and NEF, achieving significant milestones in village and household electrification.
