REC Secures $200 Million Green Loan from Deutsche Bank for Sustainable Projects in India
New Delhi [India], July 11: Rural Electrification Corporation (REC), a power financing PSU, has successfully secured a green loan of 31.96 Billion Japanese Yen (JPY) (equivalent to USD 200 million) from Deutsche Bank AG. This loan will be used to finance eligible green projects in India.
This green facility marks the first successful collaboration between an Indian government entity and Deutsche Bank AG, GIFT City branch. It sets a benchmark in the Indian public sector for similar green financing transactions, highlighting a growing commitment to sustainable financing.
REC stated, “This facility demonstrates the dedication of REC Limited and its partners to support projects that meet rigorous environmental standards, promote renewable energy, and contribute to reducing carbon emissions throughout India.”
Vivek Kumar Dewangan, CMD of REC, added, “This successful transaction aligns with REC’s commitment to enhancing its green energy financing and sustainable project capabilities. It also reflects 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, helping achieve the nation’s goals in green space financing.”
REC is a ‘Maharatna’ company under the Ministry of Power, Government of India, and is registered with RBI as a Non-Banking Finance Company (NBFC), Public Financial Institution (PFI), and Infrastructure Financing Company (IFC). The company finances the entire Power-Infrastructure sector, including Generation, Transmission, Distribution, Renewable Energy, and new technologies like Electric Vehicles, Battery Storage, Pump Storage projects, Green Hydrogen, and Green Ammonia projects.
Kaushik Shaparia, CEO of 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.”
Recently, REC has also diversified into the Non-Power Infrastructure sector, including Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institutions, Hospitals), Ports, and Electro-Mechanical works in various other sectors like Steel and Refinery. It provides loans of various maturities to State, Central, and Private Companies for creating infrastructure assets in the country.
