KfW provides a loan of $169.5 million to the Rural Electrification Corporation Limited (REC)
In December 2021, KfW, the German government-owned development bank, announced that it had provided a loan of $169.5 million to the Rural Electrification Corporation Limited (REC) of India to finance renewable energy projects in the country.
REC is a leading Indian public sector enterprise that focuses on financing power sector projects, including renewable energy projects. The loan from KfW will enable REC to continue its efforts to expand the renewable energy sector in India by financing new projects and supporting the country’s transition to a low-carbon economy.
The $169.5 million loan will be used to finance renewable energy projects with a total capacity of 500 MW. The projects will be spread across various states in India and will include solar, wind, and hydropower projects.
KfW is one of the world’s leading development banks and has a strong track record of supporting sustainable development projects across the globe. The loan to REC demonstrates KfW’s commitment to supporting the transition to a low-carbon economy in developing countries and its willingness to partner with local organizations to achieve this goal.
To summarize the deal features, we can create a table as follows:
| Deal Features | Description |
|---|---|
| Loan Amount | $169.5 million |
| Borrower | Rural Electrification Corporation Limited (REC) of India |
| Purpose | Financing renewable energy projects in India |
| Capacity | Financing projects with a total capacity of 500 MW, including solar, wind, and hydropower projects |
| Project Spread | Projects to be spread across various states in India |
| Lender | KfW, the German government-owned development bank |
| Sustainability | Demonstrates KfW’s commitment to supporting the transition to a low-carbon economy in developing countries and its willingness to partner with local organizations to achieve this goal |
In conclusion, the $169.5 million loan provided by KfW to REC is a significant step towards supporting the renewable energy sector in India. The loan will enable REC to continue its efforts to expand the renewable energy sector in the country and support its transition to a low-carbon economy. This financing deal also demonstrates KfW’s commitment to supporting sustainable development projects in developing countries and its willingness to partner with local organizations to achieve this goal.