REC targets green loan portfolio of ₹3 trillion by 2030
New Delhi: State-owned REC Ltd is looking at expanding its loan portfolio for green projects to ₹3 trillion by 2030, said its chairman and managing director Vivek Kumar Dewangan. Addressing the 54th annual general meeting (AGM) of the company, the CMD said that going forward REC would be known for its renewable energy initiatives across solar, wind, hybrid, and e-mobility projects, along with newer spaces like green hydrogen, green ammonia projects, round-the-clock projects and ethanol manufacturing.
“REC is committed to increase its present loan portfolio of green projects to the extent of more than ten times by the year 2030 amounting to ₹3 lakh crore" he said. In another development, the company said that it raised $1.15 billion last month.
The loans have been tied up for a 5-year tenor and are benchmarked to Overnight SOFR (Secured Overnight Financing Rate), which is the benchmark rate for the loans denominated in USD. The proceeds from this facility shall be utilized to fund power, infrastructure and logistics sector projects as permitted under the ECB guidelines of the Reserve Bank of India.
The funds have been raised under REC’s Market Borrowing Programme of ₹1.20 lakh crore for the year 2023-24. The amount has been raised in two tranches from a consortium of six banks.
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