IREDA Secured JPY 26 billion ECB Facility from SBI Tokyo

Current Context: The Indian Renewable Energy Development Agency (IREDA) secured a JPY 26 billion External Commercial Borrowing (ECB) facility from the State Bank of India (SBI Tokyo Branch) on March 27, 2025.

• This marks a significant milestone for India's renewable energy sector.

Here's a breakdown of the details:

• Purpose: The funds will be utilized to promote and finance renewable energy projects across India, supporting the country's transition to green energy and reducing dependence on fossil fuels.
• Loan Details: The facility is a five-year unsecured loan and includes a Green Shoe Option of JPY 10 billion, which allows flexibility to increase the loan amount based on demand.
• Cost Efficiency: The loan is provided at a highly competitive landed cost, below 7%, making it cost-effective for IREDA and enabling efficient allocation of resources for renewable energy initiatives.
• Global Presence: This agreement enhances IREDA's global footprint, demonstrating its ability to secure international funding for clean energy projects while strengthening ties with Japanese financial institutions.

Question:

Q.1 What is the total amount of the External Commercial Borrowing (ECB) facility secured by Indian Renewable Energy Development Agency (IREDA) from SBI Tokyo Branch?
a) JPY 10 billion
b) JPY 26 billion
c) JPY 50 billion
d) JPY 100 billion

Answer: b) On March 27, 2025, the Indian Renewable Energy Development Agency (IREDA) secured an ECB facility worth JPY 26 billion from the State Bank of India (SBI) Tokyo Branch.