Tuesday, November 18, 2014

#IREDA, #US Exim Bank sign $1 billion pact for clean energy projects

A Memorandum of Understanding (MOU) has been signed between Indian Renewable Energy Development Agency Ltd ( IREDA) and US Exim Bank with respect to cooperation on clean energy investment. The MoU was signed by Mr K.S. Popli, Chairman & Managing Director IREDA, and Mr Fred P Hochberg, Chairman and President, Export-Import Bank of the United States here today in the presence of Shri Upendra Tripathi, Secretary, Ministry of New and Renewable Energy (MNRE),  and other senior officials from MNRE, IREDA and US-Exim Bank.

This MoU is intended to establish a framework for cooperation in the financing of creditworthy entities for renewable energy projects and to facilitate the export of goods and services of U.S. origin or manufacture in India and various forms of collaboration between the IREDA & US-Exim Bank.

US Exim Bank shall provide US $ 1 Billion medium and long-term guaranteed and/or direct dollar loans to finance U.S. technologies, products and services utilized during commercial development activities within the clean energy sector by IREDA. The proposed credit facility carries no specific commitment on the part of IREDA and will depend on the import of US equipment to India and attractiveness of credit facility to the project developers in India. This US Exim Bank facility will be available for financing of imported US equipment, and in addition to financing of 30% of domestic component.

With the above proposed facility, IREDA will be providing a new window of credit facility to developers who would like to avail this facility to meet their specific requirement. The credit facility will be available for a repayment period of 18 years with the same fixed rate of interest. The other detailed terms and conditions shall be decided upon signing of MoU.

In fiscal year 2014, Exim Bank approved $20.5 billion in total authorizations. These authorizations supported an estimated $27.5 billion in U.S. export sales, as well as approximately 164,000 American jobs in communities across the country.