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US Exim Bank to provide $1-billion loan to IREDA

November 18: The US Exim Bank will provide a $1-billion medium and long term loan to Indian Renewable Energy Development Agency Ltd (IREDA) to establish a framework for co-operation in the financing of credit-worthy entities for renewable energy projects.

A memorandum of understanding (MoU) to establish the framework and also to facilitate exports of goods and services of US origin or manufactured in India and various forms of collaboration between IREDA and US-Exim Bank was signed in New Delhi on November 18, an official release said.

As per the MoU, Exim Bank will provide guaranteed and/or direct dollar loans to finance
US technologies, products and services utilised during commercial development activities within the clean energy sector by IREDA.

The proposed credit facility carries no specific commitment on the part of IREDA and will depend on the import of US equipment to India and attractiveness of credit facility to the project developers in India.

This US Exim Bank facility will be available for financing of imported US equipment and in addition to financing of 30% of domestic components.

With the facility, IREDA will be providing a new window of credit facility to developers who would like to avail this facility to meet their specific requirements. The credit facility will be available for a repayment period of 18 years with the same fixed rate of interest.

Solar (utility scale PV and CSP, including solar tower), wind, hydro and any other renewable energy projects, waste-to-energy, and other areas of co-operation as agreed have been identified as priority areas of clean energy investment co-operation under the MoU.