State-owned Indian Renewable Energy Development Agency (IREDA) on Monday inked an initial pact with Bank of Maharashtra to finance renewable energy projects.
The collaboration aims to promote and facilitate co-lending and loan syndication for a diverse spectrum of renewable energy projects across the nation, according to a statement.
"IREDA has signed a significant Memorandum of Understanding (MoU) with Bank of Maharashtra (BoM) today, September 18," the statement said.
The MoU comprises several services, including co-lending and co-origination support for all renewable energy projects, facilitating loan syndication and underwriting, management of trust & retention account for IREDA borrowers, and a commitment to establishing stable fixed interest rates spanning a period of 3-4 years for IREDA borrowings, the statement said.
Under the agreement, BoM can invest in the bonds issued by IREDA in accordance with the specified terms and conditions of the offering.
The MoU was signed by General Manager (Technical Services), IREDA, Bharat Singh Rajput, and General Manager (Retail & MSME Credit), BoM, Rajesh Singh, at IREDA's Business Centre here.
To address the substantial funding requirement of the renewable energy sector, including emerging technologies such as green hydrogen and offshore wind, IREDA has signed MoUs with public sector banks and financial institutions to collaborate on co-lending for big-ticket-size projects.