Indian Renewable Energy Development Agency (IREDA) has successfully secured an External Commercial Borrowing (ECB) facility amounting to JPY 28 billion from Sumitomo Mitsui Banking Corporation (SMBC). The facility agreement was signed on March 30, 2026, and includes a Green Shoe Option of JPY 12 billion.
The agreement was facilitated through SMBC’s Singapore Branch, which acted as the Mandated Lead Arranger and Bookrunner for the transaction. The purpose of this agreement is to raise ECBs, which will support IREDA’s ongoing and future projects.
The ECB loan is structured as a long-term facility with a duration of five years. As per the agreement, the loan is unsecured, with no security required from IREDA. The total amount of the loan is yet to be availed, as the facility agreement has been signed for the aggregated amount of JPY 28 billion, inclusive of the Green Shoe Option.
There is no shareholding involved in the entity with whom the agreement has been executed, and the transaction does not fall within related party transactions. Therefore, no arm’s length consideration is applicable.
Additionally, there are no significant terms disclosed beyond those stated in the facility agreement dated March 30, 2026. The agreement does not involve any issuance of shares, nor does it necessitate any related disclosures such as nominees on the board of directors or potential conflicts of interest.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).