solar: Renew Energy to get Rs 64,000 cr loan from PFC, REC

Green energy major Renew Energy Global Friday signed loan agreements worth Rs 64,000 crore with Power Finance Corporation and Rural Electrification Corporation. Public sector energy funders will lend Rs 32,000 crore each to the Nasdaq-listed energy company.

The loan agreements were signed at the clean energy ministerial meet, a part of the G20 meeting, in Goa.

“We will receive Rs 32,000 crore (USD 3.9 billion) each from PFC and REC for financing its current and upcoming energy transition projects, totalling USD 7.8 billion or Rs 64,000 crore,” the company said in a statement issued from Goa without sharing project details or a timeline for disbursals.

The company will utilise the funds for new projects, including solar, wind, hybrid, energy storage, solar modules and cell manufacturing, and green hydrogen, the statement added.

Kailash Vaswani, president, corporate finance at Renew, said the company already has a long-standing relationship with PFC and REC– the biggest lenders to the energy sector.

These loan agreements will help us meet our current and future financing needs and demonstrate our ability to raise long-term financing for large-scale green energy projects, he added. Renew has a portfolio of 13.4 gw on a gross basis as of September 2022. Apart from being a large independent power producer, it also provides end-to-end solutions in the areas of clean energy, green hydrogen, and value-added energy offerings through digitalisation, storage, and carbon markets that increasingly are integral to addressing climate change.