Indian Renewable Energy Development Agency (IREDA) has entered into a facility agreement with Sumitomo Mitsui Banking Corporation (SMBC) to raise an external commercial borrowing (ECB) amounting to ¥28 billion (~$175.37 million), including a greenshoe option of ¥12 billion (~$75.16 million), to strengthen its funding base and expand lending capacity.

The proceeds from the facility will be utilized to support sustainable financing initiatives, in line with the company’s focus on renewable energy and green projects.

The facility is structured as a five-year unsecured loan with a bullet repayment at maturity, meaning the principal will be repaid in full at the end of the tenure rather than through periodic amortization.

IREDA stated that the loan is expected to enhance its presence in international financial markets while providing a cost-efficient and resilient source of funds amid evolving global geopolitical conditions.

The ECB facility complements IREDA’s ongoing efforts to access overseas capital and to align its financing activities with India’s clean energy transition objectives.

In February this year, IREDA’s board approved a ₹29.94 billion (~$330.14 million) fundraising through a qualified institutions placement.

In January this year, IREDA Global Green Energy Finance IFSC (IGGEFIL), a wholly owned subsidiary of IREDA, approved its first international green energy loan, marking the formal start of its overseas financing operations. IGGEFIL approved a loan of $22.5 million to Swarna Solar for the development of a 100 MW solar project in the Serenje District of Zambia’s Central Province.

The company’s loan approvals for the nine months ended December 31, 2025, stood at ₹401 billion (~$4.44 billion), a 29% year-over-year increase from ₹310.87 billion (~$3.44 billion). Loan disbursements grew by 44% from ₹172.36 billion (~$1.91 million) as of December 31, 2024, to ₹249.03 billion (~$2.76 billion) as of December 31, 2025.

The company reported a revenue from operations of ₹21.3 billion (~$236.2 million) in the third quarter of the financial year 2026, a 25% year-over-year rise from ₹16.98 billion (~$188.3 million).