News

IREDA has secured an ECB (External Commercial Borrowing) facility worth JPY 26 billion from SBI Tokyo.

Banking & Finance | Dated: 29 Mar 2025

In March 2025, the State-owned Indian Renewable Energy Development Agency Limited (IREDA), a 'Navratna' Central Public Sector Enterprise (CPSE) under the Ministry of New and Renewable Energy (MNRE), based in New Delhi (Delhi), signed a facility agreement for External Commercial Borrowing (ECB) worth Japanese Yen (JPY) 26 billion (approximately Rs 1,476 crore).

🎯 Key Highlights:

- This loan will be raised from the Tokyo branch of State Bank of India (SBI), India’s largest Public Sector Bank (PSB) in Japan.
- The agreement also includes a green shoe option of JPY 10 billion.
- This is an unsecured loan facility with a 5-year term, and the full amount will be repaid in a single payment at maturity. It is expected to enhance IREDA's presence in international financial markets.

💡 Other Important Facts:

(i) According to IREDA, after hedging, the total cost of the loan is expected to be less than 7%. This makes it more cost-effective compared to similar loans with the same tenure in the domestic market.
(ii) The overallotment or green shoe option allows the underwriter to buy back a certain number of shares at a fixed price to support the share price.

📚 Test Your Knowledge:

Recently, which organization secured an External Commercial Borrowing (ECB) facility worth JPY 26 billion from SBI Tokyo?

Correct Answer: IREDA

🚀 Quick Recap:

About Indian Renewable Energy Development Agency (IREDA)

CMD : Pradip Kumar Das
Headquarters : New Delhi