MoU for Bank of Maharashtra to invest in IREDA-issued bonds
Indian Renewable Energy Development Agency (IREDA) has signed a significant Memorandum of Understanding (MoU) with Bank of Maharashtra (BoM) on 18 Sept to promote and facilitate co-lending and loan syndication for a diverse spectrum of Renewable Energy projects across the nation.
The MoU comprises several services including co-lending and co-origination support for all Renewable Energy projects, facilitating loan syndication and underwriting, management of Trust & Retention Account for IREDA borrowers, and a commitment to establishing stable fixed interest rates spanning a period of 3-4 years for IREDA borrowings.
Under this agreement, Bank of Maharashtra can invest in the Bonds issued by IREDA in accordance with the specified terms and conditions of the offering.
“This MoU with Bank of Maharashtra is another significant step in our ongoing efforts to promote Renewable Energy adoption in India,” Chairman and Managing Director of IREDA Pradip Kumar Das.
“By joining forces, we aim to provide a robust financial ecosystem for Green Energy projects, making clean and sustainable energy accessible to more communities and industries,” he said.
“The partnership underscores the importance of Financial Institutions and Government Agencies working together in line with country’s goal to achieve India’s goal of Net Zero emissions by the year 2070.”
To address the substantial funding requirement of the Renewable Energy sector, including emerging technologies such as Green Hydrogen and Offshore Wind, IREDA has signed MoUs with Public Sector Banks and Financial Institutions to collaborate on co-lending for big-ticket-size projects.
The MoU was signed by General Manager (Technical Services), IREDA, Bharat Singh Rajput and General Manager (Retail & MSME Credit), Bank of Maharashtra, Rajesh Singh at IREDA’s Business Centre, New Delhi. Fiinews.com
