Indian Renewable Energy Development Agency Limited (IREDA) has successfully signed a Facility Agreement to raise an External Commercial Borrowing (ECB) facility amounting to JPY 28 billion. The loan provider is Sumitomo Mitsui Banking Corporation (SMBC), acting as the Mandated Lead Arranger and Bookrunner. The agreement, executed on March 30, 2026, includes a Green Shoe Option of up to JPY 12 billion, strengthening IREDA’s commitment to financing renewable energy projects.
IREDA Finalizes Major ECB Funding for Renewable Sector
Indian Renewable Energy Development Agency Limited (IREDA), a Government of India Enterprise, announced the successful execution of a significant funding agreement on March 30, 2026. This facility is structured as an External Commercial Borrowing (ECB) designed to support the expansion of renewable energy initiatives across India.
Key Financial Details of the Facility
The total facility size agreed upon is JPY 28 billion. Importantly, this amount incorporates an additional Green Shoe Option of JPY 12 billion, providing flexibility for IREDA to raise further capital if required under the stipulated terms. The agreement was signed with Sumitomo Mitsui Banking Corporation Singapore Branch, which serves as the Mandated Lead Arranger and Bookrunner.
Loan Structure Overview
- Lender/Arranger: Sumitomo Mitsui Banking Corporation Singapore Branch
- Borrower: Indian Renewable Energy Development Agency Limited (“IREDA”)
- Nature of Loan: External Commercial Borrowing (ECB)
- Tenure: 5 years (long term)
- Total Sanctioned Amount: Aggregated amount of JPY 28 billion (including Green Shoe Option of JPY 12 billion)
- Security Provided: The facility is designated as an unsecured facility.
IREDA confirms that the loan amount is yet to be availed, pending necessary drawdown procedures following the facility signing. The terms stipulate that there are no related party transactions involved, and the arrangement is conducted at arm’s length. The company secretary, Ekta Madan, confirmed the details of this strategic funding action.
Source: BSE
