IREDA Share Price Gains Over 5%; Secures ¥28 Billion ECB from SMBC with Green Shoe Option

Indian Renewable Energy Development Agency Limited (IREDA) has signed a facility agreement with Sumitomo Mitsui Banking Corporation (SMBC), Singapore Branch, to raise external commercial borrowings. The total facility size stands at ¥28 billion, which includes a green shoe option of ¥12 billion.  

The agreement was executed on 30 March 2026. SMBC is acting as the mandated lead arranger and bookrunner for the transaction.  

Tenure and Structure 

The borrowing is structured as a long-term external commercial borrowing with a tenure of 5 years. The facility remains unutilised at the time of signing, with drawdown expected in phases as required.  

The green shoe option allows for an increase in the borrowing amount within the agreed limit, subject to terms outlined in the facility agreement.  

Terms of the Agreement 

The loan is unsecured, with no collateral provided against the facility. There is no shareholding by SMBC in IREDA, and the transaction does not fall under related party arrangements.  

No equity issuance, board representation, or additional governance rights are part of the agreement. Other terms are governed by the facility agreement dated 30 March 2026.  

Purpose of Borrowing 

The funds are intended to support IREDA’s financing activities. The company raises overseas borrowings as part of its funding mix to support lending operations in the renewable energy segment.  

The ECB route allows access to foreign capital, typically used by financial institutions and corporates for long-term funding requirements. 

Regulatory Disclosure 

The development was disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was made on March 30, 2026.  

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IREDA Share Price Performance  

As of April 1, 2026, 10:04 am, Indian Renewable Energy Development Agency ( IREDA) share price was trading at ₹114.71, up 5.26% from the previous closing price. 

Conclusion 

The agreement outlines a structured overseas borrowing arrangement with defined size, tenure, and terms, including an option to expand the facility within the approved limit. 

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