Power sector financier REC Limited has successfully placed 31.96 billion Japanese yen under the 5-year green loan it raised. Arranged by Deutsche Bank’s Gift City branch, the deal amounts to $200 million. “The proceeds raised shall be utilised to finance eligible green projects in India,” REC said in a statement.
Commitment to Green Energy
“This successful transaction is in line with REC’s commitment to enhancing green energy financing and sustainable project capabilities while garnering support for the global community towards such development projects in India,” said Vivek Kumar Dewangan, CMD, REC.
Also Read | Suzlon Wins 103.95 MW Wind Project in Rajasthan: To power 85,000 households
The Role of Deutsche Bank
This transaction was one of the first yen-denominated green loan transactions for Deutsche Bank via its Gift City branch. On this collaboration, Kaushik Shaparia, Chief Executive Officer of Deutsche Bank Group, India, said, “Our collaboration with REC epitomizes our solid commitment toward environmental causes and sustainable financing in India.”
Also Read | IREDA Q1 Results Show 30% Surge in Profits: From Asset Quality to Future FPO Plans Check All the Details
Understanding Green Loans
Green loans are finance flows exclusively used for supporting projects that contribute to environmental sustainability. Most projects pertain to renewable energy, energy efficiency, pollution prevention, and other green initiatives. A green loan will thus help an organization like REC support the transition process to a more sustainable economy.
About the Author
Ms Akshita Siddhapura is a Business Analytics student at SCMS-B, passionate about finance and research. She has a keen interest in financial analysis and strategic growth, showing a strong commitment to business and finance.
