About 70% of India’s electricity comes from dirty fuels, especially coal. The government is aiming to generate 50% of its power from renewable sources by 2030.
The Ministry of Power’s financing arm, REC Limited, formerly the Rural Electrification Corp., provides loans to both public and private energy and infrastructure developments. Its 60.5 billion yen-denominated ($386 million) green bond was backed by Crédit Agricole, Bank of America, Citibank, KfW-IPEX Bank and Sumitomo Mitsui Banking Corp., attracting interest from both Japanese and international investors.
The Italian export credit agency, SACE, guaranteed 80% of the bond, its first yen-denominated transaction.
The bond will support financing for renewable generation and transmission, green hydrogen and ammonia, electric mobility and other green infrastructure.
Leveraging guarantees
International export credit agencies offer guarantees of up to 85% of project costs, helping infrastructure developers secure bank financing. REC Limited’s Vivek Kumar Dewangan said he hopes the deal will enhance “Indo-Italian business relationships in green energy financing and sustainable projects capabilities.”
In Africa, Acre Impact Capital notched $100 million to help African infrastructure developers finance the non-guaranteed portion of their projects.
