IREDA Secures JPY 26 Billion from SBI Tokyo to Boost Renewable Energy Growth

31 Mar 2025 , 02:05 PM

Indian Renewable Energy Development Agency Ltd (IREDA), a leading financier of renewable energy projects in the country, has signed External Commercial Borrowings (ECB) agreement with the State Bank of India (SBI), Tokyo Branch, for JPY 26 billion to facilitate the development of renewable energy projects in India.

The deal also features a Green Shoe Option of JPY 10bn which offers IREDA extended financial leeway to finance green energy projects. The proposed loan is an unsecured one with a 5-year tenure, which is intended to fund and promote renewable energy projects that will contribute to India’s long term sustainability objectives.

The transaction with SBI Tokyo Branch was done on an arm’s length basis, and hence, there is no issue of shareholding, IREDA is stated to have confirmed.

India’s renewable energy transition IREDA a cumulative insulation of US dollar 78 million funding is part of IREDA’s comprehensive plan to diversify financial sources and fortify international relations supporting the financing of renewable energy projects in India.

The raised capital would be used in various renewable energy projects reaffirming IREDA’s leadership role as the largest financial intermediaries in Indian green energy.

This comes in the wake of the recent amendments to the Reserve Bank of India’s (RBI) Priority Sector Lending (PSL) guidelines, which expands eligibility parameters for renewable energy projects.

According to the amended RBI circular, bank loans of up to ₹35 crore for renewable energy-based power generation and public utilities will now be eligible for Priority Sector Lending advantages.

IREDA-era shares were last at ₹159.50 apiece on the National Stock Exchange (NSE), down 1.34% on the day. Q3FY25 financials: IREDA’s net profit (PAT) at ₹425.4 crore vs ₹335.5 crore YoY; up 26.8% YoY. On a quarter-on-quarter basis, IREDA’s profit after tax (PAT) was up 10 per cent sequentially, improving from ₹388 crore in Q2FY25 to ₹425.4 crore in Q3FY25.