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POWERGRID Signs Green Loan Agreement with SMBC to Support Renewable Energy Transformation.

Economy Business | Dated: 06 Jan 2025

In December 2024, Gurgaon (Haryana)-based Power Grid Corporation of India Limited (POWERGRID), a Maharatna PSU under the Ministry of Power (MoP), signed a "Green Loan Agreement" with Japan’s Sumitomo Mitsui Banking Corporation (SMBC) at Gujarat International Finance Tec-City (GIFT), Gandhinagar, Gujarat.

🎯 Key Highlights:

  • - The loan facility, denominated in Japanese Yen (JPY), is equivalent to USD 200 million, with an additional greenshoe option of USD 150 million for further expansion.
  • - The agreement was signed in the presence of G Ravisankar, Director (Finance), POWERGRID, LK Khajkumar, ED (Corporate Planning), POWERGRID, along with senior officials from both SMBC and POWERGRID.

💡 Other Important Facts:

  • (i) he green loan will be used to construct and develop critical infrastructure to support the evacuation and integration of Renewable Energy (RE) into India's national power grid.
  • (ii) This initiative aligns with India's Sustainable Development Goals (SDGs) and reflects POWERGRID's dedication to promoting renewable energy, improving grid reliability, and upholding Environmental, Social, and Governance (ESG) principles.

📚 Test Your Knowledge:

Which organization recently signed a green loan agreement with SMBC to support renewable energy transformation?

Correct Answer: POWERGRID

🚀 Quick Recap: