The Business Bytes
THEBUSINESSBYTES BUREAU
NEW DELHI, MARCH 28, 2025
Indian Renewable Energy Development Agency Limited (IREDA) has secured a significant boost in its financial arsenal by signing an agreement for a 26 billion Japanese Yen loan from the Tokyo branch of the State Bank of India (SBI). The agreement also includes a greenshoe option of 10 billion Japanese Yen, reinforcing IREDA’s commitment to expanding its global funding sources.
The five-year unsecured loan facility, featuring a bullet repayment at maturity, is expected to provide cost-effective funding, strengthening IREDA’s presence in the international financial market. According to the company, the effective landed cost after hedging is projected to be below 7 per cent, making it a more economical alternative than similar-tenure borrowings in the domestic market.
IREDA Chairman and Managing Director Pradip Kumar Das highlighted the strategic importance of this funding, stating, “This facility enables us to diversify our resource base and optimise costs, enhancing our lending operations to support India’s renewable energy sector. The transaction reflects the strong confidence of global investors in IREDA’s financial stability and growth potential.”
IREDA has been witnessing robust financial performance, reflecting its steady growth in the renewable energy financing sector. The company’s net profit surged 26.8% to ₹425.37 crore in Q3 FY 2023-24, up from ₹335.54 crore in the same quarter of the previous year. Its revenue jumped 35.57% to ₹1,698.99 crore, compared to ₹1,253.20 crore in Q3 FY 2023-24. Loan sanctions rose sharply by 45.01%, reaching ₹13,226.81 crore, compared to ₹9,121.11 crore in the corresponding quarter last year, while loan disbursements increased 25.27% to ₹7,448.96 crore, up from ₹5,946.45 crore in the same period last year.
With a total loan book expanding to ₹68,959.61 crore, reflecting a 36.34% rise from ₹50,579.67 crore in Q3 FY 2023-24, IREDA continues to play a pivotal role in financing India’s transition to clean energy. The company’s net worth also saw a 20.99% increase, reaching ₹9,842.07 crore.
