In a major boost to India’s renewable energy sector, the Indian Renewable Energy Development Agency Ltd. (IREDA) and Punjab National Bank (PNB) have signed a memorandum of understanding (MoU) to co-finance and syndicate loans for a diverse range of green energy projects across the nation.
Co-lending and loan syndication for sustainability
The MoU, signed at IREDA’s registered office in New Delhi on February 19, 2024, aims to enhance the financial support for renewable energy projects by leveraging the strengths and resources of both organizations. The agreement covers various provisions, such as:
- Joint lending, loan syndication and underwriting for renewable energy projects
- Management of Trust and Retention Account (TRA) for IREDA borrowers
- Working towards competitive terms of sanction, including pricing on IREDA borrowings
- Investing in bonds issued by either organization
The MoU was signed by General Manager of IREDA Dr. R. C. Sharma, and Chief General Manager of PNB Shri Rajeeva, in the presence of Chairman & Managing Director of IREDA Shri Pradip Kumar Das, MD & CEO of PNB Shri Atul Kumar Goel, Director (Finance) of IREDA Dr. Bijay Kumar Mohanty, and other senior officials from both organizations.
Aligning with India’s renewable energy targets
The collaboration between IREDA and PNB is expected to accelerate the growth of renewable energy in the country, aligning with the Hon’ble Prime Minister’s COP26 announcement to achieve a 500 GW Non-Fossil-based electricity generation capacity by 2030.
Expressing his views on the partnership, CMD of IREDA Shri Pradip Kumar Das remarked: “This strategic partnership between IREDA and PNB marks a significant step in our commitment to foster sustainability and environmental awareness. By combining our strengths and resources, we aim to provide robust financial support to a diverse range of Renewable Energy projects. Through the MoU and prior agreements with other leading financial institutions, IREDA is well-positioned to fund large-scale renewable energy projects.”
This collaboration strengthens IREDA’s successful partnerships with other prominent financial institutions, including Bank of Baroda, Union Bank of India, Bank of India, India Infrastructure Finance Company Limited, Bank of Maharashtra, and Indian Overseas Bank. These MoUs similarly focus on co-lending and loan syndication for a wide range of Renewable Energy projects across the country.
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