Deutsche Bank AG Provides REC with JPY 31.96 billion Green Loan for Sustainable Development
REC (formerly Rural Electrification Corporation), a government entity in India, has taken a significant stride towards financing sustainable development by securing a JPY 31.96 billion green loan from Deutsche Bank AG, GIFT City branch. This pioneering collaboration between an Indian government entity and Deutsche Bank aims to support projects that adhere to rigorous environmental standards, contribute to reducing carbon emissions, and promote the adoption of renewable energy nationwide.
Pioneering JPY-Denominated Green Loan
This initiative is one of the initial instances of JPY-denominated green loans executed by Deutsche Bank AG, GIFT City. The loan facility represents a landmark moment in Indian sustainable finance and showcases the bank’s expertise in green financing. By facilitating the flow of foreign liquidity towards environmentally responsible projects, Deutsche Bank is actively contributing towards India’s green financing objectives.
REC’s Commitment to Green Energy
Vivek Kumar Dewangan, CMD of REC, regards this successful transaction as an affirmation of REC’s commitment to enhance its financing of green energy and sustainable projects. With the support of the international community, REC believes that such partnerships can further assist in achieving India’s renewable energy objectives. In the previous fiscal year, REC sanctioned an impressive Rs 3.59 trillion in loans, with Rs 1.36 trillion specifically allocated to renewable energy projects. However, REC aspires to increase the proportion of renewable energy in their loan portfolio from the current 10% to 30% by 2030.
Deutsche Bank Group’s Dedicated Focus on Sustainability
Kaushik Shaparia, CEO of Deutsche Bank Group in India, highlights that the partnership with REC reaffirms the bank’s unwavering dedication to advancing environmentally responsible initiatives and promoting sustainable finance within India. This green loan transaction showcases Deutsche Bank’s proficiency in supporting clients as they transition towards a carbon-neutral future. By leveraging their expertise in green financing, Deutsche Bank aims to make a lasting impact on India’s sustainability journey.
Future Collaborations for Green Financing
This remarkable collaboration between REC and Deutsche Bank AG sets a precedent for future partnerships in green financing. As India progresses towards sustainable development, it is increasingly crucial for government entities and financial institutions to work together in support of environmentally conscious projects. REC’s leadership aims to open avenues for further collaborations that align with the nation’s objectives for green financing and sustainable growth. With recirculating investments in sustainable projects, India will continue working towards its goal of a greener future.
