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IREDA Inks Pact With PNB For Financing Green Energy Projects

The agreement paves the way for joint efforts in co-lending and loan syndication for a diverse spectrum of renewable energy projects, it added.

IREDA Inks Pact With PNB For Financing Green Energy Projects

New Delhi: Indian Renewable Energy Development Agency Ltd. (IREDA) and Punjab National Bank (PNB) have signed a Memorandum of Understanding (MoU) to co-finance renewable energy projects, Ministry of New and Renewable Energy
said in a release.

The agreement paves the way for joint efforts in co-lending and loan syndication for a diverse spectrum of renewable energy projects, it added.

The MoU comprises various provisions aimed at enhancing support for renewable energy projects. These include joint lending, loan syndication and underwriting, management of Trust and Retention Account (TRA) for IREDA borrowers, and working towards competitive terms of sanction, including pricing on IREDA borrowings. Through the collaboration, IREDA and PNB can also invest in bonds issued by either organization.

"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," the release said.

IREDA CMD Pradip Kumar Das said, "Through the MoU and prior agreements with other leading financial institutions, IREDA is well-positioned to fund large-scale renewable energy projects, aligning with the Hon’ble Prime Minister’s COP26 announcement to achieve a 500 GW Non-Fossil-based electricity generation capacity by 2030."