Indian Renewable Energy Development Agency (IREDA) has announced a partnership with Bank of Maharashtra (BoM) to provide financing for renewable energy projects in India. The collaboration aims to promote and facilitate co-lending and loan syndication for a diverse range of renewable energy projects across the country.
According to a statement, the Memorandum of Understanding (MoU) between IREDA and BoM includes various services such as co-lending and co-origination support, loan syndication, and underwriting for all renewable energy projects. It also entails the management of a trust and retention account for IREDA borrowers and a commitment to establishing stable fixed interest rates for a period of 3-4 years for IREDA borrowings.
Under the agreement, Bank of Maharashtra will have the opportunity to invest in the bonds issued by IREDA, subject to specified terms and conditions. The MoU was signed by representatives from both organizations at IREDA’s Business Centre in New Delhi.
IREDA, in its effort to address the funding requirements of the renewable energy sector, has signed similar agreements with public sector banks and financial institutions to collaborate on co-lending for big-ticket-size projects. This initiative is aimed at supporting the growth of emerging technologies in the renewable energy sector, such as green hydrogen and offshore wind.
Sources:
– Indian Renewable Energy Development Agency (IREDA)
– Bank of Maharashtra (BoM)