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ADB, India sign $200 million loan for renewable energy

Staff writer |
The Asian Development Bank (ADB) and the Government of India have signed a $200 million loan agreement to support lending by Indian Renewable Energy Development Agency (IREDA) to renewable energy subprojects in India.

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The loan is the first tranche of a $500 million multitranche financing facility (MFF) to IREDA for the Clean Energy Finance Investment Program.

The Program aims to leverage public sector resources to catalyze private sector investments in renewable energy subprojects including wind, biomass, hydropower, solar, and cogeneration technologies.

ADB funds will partly meet the long-term credit IREDA needs to meet its renewable energy development target. IREDA is a government-owned nonbank financial institution established to promote renewable energy investment and under the administrative oversight of the Ministry of New and Renewable Energy.

The program is expected to leverage an estimated $300 million in equity and other investments from subproject sponsors, and at least $200 million of additional debt funds from unrestricted sources for a total investment program of around $1 billion.

This translates into approximately 990 megawatts of additional renewable energy capacity.

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