(Telestock) – SACE, the Italian insurance and financial group controlled by the Ministry of Economy and Finance, has announced its commitment to Support sustainable and rural electrification projects in India through a financial guarantee of USD 320 million. The guarantee, which covers 80% of a loan of JPY 60.5 billion, equivalent to USD 400 million, is issued in favor of REC Limited (REC), an Indian public finance company specialized in financing energy and infrastructure projects that operates under the control of the Ministry of Energy of the Government of India. The loan – SACE reports in a note – was provided by a pool of banks composed of Crédit Agricole CIB, also in the role of Agent, ECA and Green Loan Coordinator, Bank of America, Citibank, KFW Ipex-Bank, SMBC.
The funding aims to promote supplies from Italian companiesin particular SMEs, in renewable energy, energy efficiency and sustainable mobility projects financed by REC. The operation is part of the initiative Green & Social Push by SACE and represents SACE’s first Green Push in India, underlining the company’s ongoing commitment to sustainable development.
REC, with a mandate to finance and promote energy projects in India, plays a crucial role in the country’s efforts for electrification and infrastructure. SACE collaboration with REC marks the first initiative aimed at facilitating the involvement of Italian companies in REC-financed investments. The operation is expected to have a positive impact on the economy, contributing approximately EUR 145.1 million to GDP and preserving 2,389 jobs.
“This operation represents a significant step in strengthening ties between Italy and India, promoting sustainable development and the participation of Italian companies in strategic investments in the energy and infrastructure sectors”, he commented. Michal Ron, chief international officer of SACE.
“With the success of this operation through a global financing – he declared Vivek Kumar Dewangan, IAS, Chairman & CEO, REC – paves the way for more such collaborations, further enhancing Indo-Italian trade relations in renewable energy financing and green project implementation, as well as strengthening the global community’s support for sustainable development projects in India.”
“This transaction represents a further step forward in the long-standing collaboration between SACE and Crédit Agricole CIB in export credit products, which has long included Push financing. As a leading global sustainable finance bank, we welcome the development of Green Push and are particularly proud to have acted as the sole ECA Coordinator, Green Loan Coordinator, Documentation and Facility Agent in this market-leading loan,” said Stefano Porro, head of International Trade & Transaction Banking – Crédit Agricole CIB Italia.
“We are delighted – he declared Andreas Ufer, Member of the Board of Directors of KfW IPEX-Bank – to act as Mandated Lead Arranger in this financing that supports sustainable transformation in India through the selection of suitable green projects and promotes procurement from Italian and other European companies, continuing our well-established collaboration with SACE. REC is an important strategic partner across all sectors in India and we look forward to participating in many more projects in the future.”