Kolkata-Based Srei Equipment to Get $30 Million from FMO to Refinance its Renewable Business
It will refinance its green activities either through financing or leasing of equipment used for solar and wind projects
Kolkata-based Srei Equipment Finance has announced that it has received a credit approval of $30 million from FMO, the Netherlands’ development finance company.
According to Srei Equipment Finance Limited, the loan will be fully utilized to refinance the green activities undertaken by the company. Srei Equipment, a wholly-owned subsidiary of Srei Infrastructure Finance Limited, will refinance its green activities either through financing or leasing of equipment used for solar and wind projects.
Srei Equipment already has an environmental and social management system in place, and the debt investment by FMO will further help the company to amplify its ongoing efforts towards responsible financing, the company observed.
According to Devendra Kumar Vyas, managing director of Srei Equipment Finance Limited, “Renewable energy technologies are clean sources of energy that have a much lower environmental impact than conventional energy technologies. Therefore, for the sake of a sustainable future, we need to consciously make an effort to invest in such environment-friendly measures. This transaction reaffirms our dedication towards building a sustainable future.”
A plethora of Indian companies working in the renewable energy space has received the much-needed financial assistance from FMO for their portfolio expansion.
For instance, in April 2019, Avaada Energy, an independent power producer, received funds of around ₹10 billion ($143.8 million), in the form of equity infusion from the Asian Development Bank (ADB), German development bank – DEG, and FMO. The funding was expected to be used to develop a portfolio of 2.4 GW capacity of renewable energy projects.
In January last year, Mercom reported that the FMO provided $4 million (~₹254 million) in equity funding to Orb Energy to expand its in-house finance facility of rooftop solar projects for small and medium-sized enterprises (SMEs) in India and Kenya.
Earlier, Yes Bank, FMO, DEG (the development bank of Germany) and Proparco (the development of France) signed a Green Finance Charter for green financing in India. Through the charter, the four banks committed to mobilizing green investments, seize opportunities in India’s sunrise sectors, and contribute to achieving India’s Nationally Determined Contribution (NDC) and Sustainable Development Goals (SDG) targets towards climate change.
Anjana is a news editor at Mercom India. Before joining Mercom, she held roles of senior editor, district correspondent, and sub-editor for The Times of India, Biospectrum and The Sunday Guardian. Before that, she worked at the Deccan Herald and the Asianlite as chief sub-editor and news editor. She has also contributed to The Quint, Hindustan Times, The New Indian Express, Reader’s Digest (UK edition), IndiaSe (Singapore-based magazine) and Asiaville. Anjana holds a Master’s degree in Geography from North Bengal University, and a diploma in mass communication and journalism from Guru Ghasidas University, Bhopal.