REC Limited, a prominent player in India’s power sector, has secured a green loan of JPY 31.96 billion (approximately $200 million) from Deutsche Bank AG’s Gift City branch. This marks a notable collaboration between an Indian government entity and Deutsche Bank, aiming to fund eligible green projects across India.
This green loan facility represents the first successful collaboration between an Indian government entity, REC Limited, and Deutsche Bank AG’s GIFT City branch, establishing a new benchmark in green financing within the Indian public sector. The loan will be used to finance projects that meet rigorous environmental standards, enhance renewable energy use, and contribute to reducing carbon emissions throughout India.
Vivek Kumar Dewangan, CMD, REC said, “This successful transaction is in line with REC’s commitment to enhance its green energy financing and sustainable projects capabilities as well as the global community’s support for sustainable development projects in India. This benchmark transaction is anticipated to pave the way for more such collaborations in the future which can help in achieving the nation’s goals in green space financing.”
Kaushik Shaparia, CEO, Deutsche Bank Group, India said, “Our collaboration with REC underscores our steadfast commitment to advancing environmentally responsible initiatives and promoting sustainable financing within India. This transaction reinforces Deutsche Bank’s expertise in green financing, demonstrating our ability to support clients in their transformation towards a carbon-free future.”
REC is a ‘Maharatna’ company under the Ministry of Power, Government of India, 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.