IREDA and Indian Overseas Bank Join Hands for Co-Lending

by Psu Connect
Date: 16-01-24

The agreement, inked at IREDA's Business Centre in New Delhi today, sets the stage for collaborative efforts in co-lending and loan syndication for a diverse spectrum of Renewable Energy projects across the nation.

IREDA and Indian Overseas Bank Join Hands for Co-Lending

New Delhi: Indian Renewable Energy Development Agency Ltd. (IREDA) and Indian Overseas Bank (IOB) have joined hands through the signing of a Memorandum of Understanding (MoU). The agreement, inked at IREDA's Business Centre in New Delhi today, sets the stage for collaborative efforts in co-lending and loan syndication for a diverse spectrum of Renewable Energy projects across the nation.

The MoU was signed by Dr R. C. Sharma, General Manager, IREDA and Shri Anil Kumar, Chief Regional Manager, IOB, in the presence of Shri Pradip Kumar Das, Chairman & Managing Director of IREDA, Shri Ajay Kumar Srivastava, MD & CEO of IOB, Dr Bijay Kumar Mohanty, Director (Finance), IREDA and senior officials from both organizations.

Shri Pradip Kumar Das, CMD, IREDA stated, "This strategic partnership between IREDA and Indian Overseas Bank 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 the Hon’ble Prime Minister’s COP26 announcement to achieve a 500 GW Non-Fossil-based electricity generation capacity by 2030.

Encompassing a range of services, the MoU includes provisions for co-lending and co-origination support for all Renewable Energy projects. The partnership aims to streamline loan syndication and underwriting processes, management of Trust and Retention Account (TRA) for IREDA borrowers, and work towards fixed interest rates over a 3–4-year period for IREDA borrowings.

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. These MoUs similarly focus on co-lending and loan syndication for a wide range of Renewable Energy projects across the country.

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