New Delhi: The Indian Renewable Energy Development Agency Ltd (IREDA) signed a Memorandum of Understanding (MoU) with Indian Overseas Bank (IOB) for co-lending and loan syndication to support Renewable Energy projects across the country.
The MoU encompasses a range of services, including provisions for co-lending and co-origination support for all Renewable Energy initiatives.
The partnership seeks to streamline various financial processes, including loan syndication and underwriting, as well as the management of Trust and Retention Account (TRA) for IREDA borrowers. Additionally, the collaboration aims to work towards establishing fixed interest rates over a three to four years period for IREDA borrowings.
The MoU was signed at IREDA’s Business Centre in New Delhi and was attended by officials, including Chairman & Managing Director of IREDA, Pradip Kumar Das; MD & CEO of IOB, Ajay Kumar Srivastava; and Director (Finance), IREDA, Dr Bijay Kumar Mohanty, General Manager, IREDA, Dr RC Sharma and Chief Regional Manager, IOB, Anil Kumar.
On this occasion, CMD, IREDA Das highlighted the strategic significance of the partnership, stating, “This strategic partnership between IREDA and IOB marks a significant step in our commitment to accelerate the growth of renewable energy in the country. By combining our strengths and resources, we aim to provide robust financial support to a diverse range of Renewable Energy projects, fostering sustainability and environmental awareness. Through the MoU and prior agreements with other leading financial institutions, IREDA is well-positioned to fund large-scale renewable energy projects, aligning with Prime Minister’s COP26 announcement of achieving a 500 GW Non-Fossil-based electricity generation capacity by 2030.”
This collaboration builds upon IREDA’s successful partnerships with other prominent financial institutions, including Bank of Baroda, Bank of India, Union Bank of India, India Infrastructure Finance Company Limited, and Bank of Maharashtra.
Similar to these existing MoUs, the partnership with IOB focuses on co-lending and loan syndication for a wide range of Renewable Energy projects across the country. /BI/
