IREDA raises JPY 28 billion ECB from SMBC Singapore

Indian Renewable Energy Development Agency Limited (IREDA) signed a facility agreement on Monday with Sumitomo Mitsui Banking Corporation (SMBC) Singapore Branch for an external commercial borrowing (ECB) of JPY 28 billion, including a green shoe option of JPY 12 billion, making the base facility JPY 16 billion.

The borrowing is structured as a five-year unsecured loan, with SMBC Singapore Branch acting as mandated lead arranger and bookrunner. The loan amount is yet to be drawn down; Monday’s signing covers the facility agreement. No security has been pledged against the facility.

The transaction does not involve any promoter group interest in SMBC, and is not classified as a related party transaction. IREDA, a government of India enterprise under the Ministry of New and Renewable Energy, is listed on both BSE Limited and the National Stock Exchange of India Limited under the symbol IREDA. The disclosure was signed by Company Secretary Ekta Madan.

ECB facilities allow Indian entities to borrow from foreign lenders in foreign currency, often at lower interest rates than domestic borrowings. The yen-denominated facility adds currency exposure but fits within IREDA’s broader strategy to diversify funding sources. The agency’s board had earlier approved a market borrowing programme of up to Rs 40,000 crore for FY2026-27, which explicitly included ECBs and foreign currency instruments among the permitted borrowing mix.