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IREDA Secures JPY26 Billion Loan from SBI Tokyo to Boost Global Market Presence
Mar 29, 2025
Indian Renewable Energy Development Agency (IREDA) has secured a JPY26 billion loan facility from State Bank of India Tokyo through external commercial borrowings (ECB), including a JPY10 billion greenshoe option. The five-year unsecured loan will be repaid in a bullet payment at maturity, with a hedged cost below 7%.
Key Developments:
- Diversifying Funding Sources: The move aligns with IREDA’s goal to optimize costs and expand its lending support for India's renewable energy sector.
- Recent Capital Raising Initiatives:
- Perpetual Bonds: Rs1,247 crore at 8.4% annual coupon rate.
- Tier-II Bonds: Rs910 crore at 7.74% for 10 years.
- Qualified Institutions Placement (QIP) Plan: Rs5,000 crore, aiming to cap government equity dilution at 7%.
- Strong Financial Performance:
- Loan approvals surged 129% YoY to Rs31,087 crore.
- Increased demand for renewable energy financing across both government and private sectors.
Strategic Implications:
- IREDA’s BBB- (S&P) credit rating and expanding funding sources enhance its position as a key financer in India’s clean energy transition.
- The Tokyo ECB loan strengthens IREDA’s global market footprint, reinforcing its long-term commitment to renewable investments.