IREDA Secures Major Japanese Yen Funding to Boost Green Energy

State-owned IREDA has secured a 26 billion Japanese Yen loan from SBI's Tokyo Branch to enhance its global presence and support India's renewable energy sector. The five-year facility boasts a competitive interest rate, showcasing global confidence in IREDA's financial health and growth prospects.

State-owned IREDA has announced the acquisition of a significant 26 billion Japanese Yen External Commercial Borrowing facility from SBI's Tokyo Branch. This arrangement includes a green shoe option amounting to an additional 10 billion Japanese Yen.

The five-year unsecured financial instrument is a strategic move aimed at bolstering IREDA's market position on a global scale. According to the company's official statement, the cost after hedging is expected to remain under 7 percent—lower than comparable loans in the domestic market.

Pradip Kumar Das, IREDA's Chairman and Managing Director, stated that this financial facility will help the company diversify its resources and optimize costs, facilitating enhanced lending to India's renewable energy sector. The agreement signifies the robust confidence global investors have in IREDA's financial stability and growth potential.

(With inputs from agencies.)