ReNew inks initial pact with Asian Development Bank for $5.3 bn funding

Renewable energy firm ReNew Energy Global Plc has inked an initial pact with the Asian Development Bank (ADB) for a funding of USD 5.3 billion.

"The MoU was signed at COP28, Dubai by ReNew's Founder, Chairman and CEO, Sumant Sinha and Suzanne Gaboury, Director General, Private Sector Operations Department, ADB," a company statement said.

According to the statement, the MoU identified potential investments in renewable energy projects, manufacturing, carbon offset projects, green hydrogen, to jointly support sustainable energy transition.

ReNew Energy Global Plc and ADB will also collaborate on climate change mitigation and adaptation projects, it said.

The initial pact covers lending of more than USD 5.3 billion between 2023 and 2028, it informed.

The MoU, a first of its kind in the Indian Renewable Energy sector, is expected to draw interest from additional international investors to participate in financing long-term debt for significant Renewable Energy infrastructure projects, it stated.

In addition, it will help ADB achieve its funding ambition of USD 100 billion in green energy projects by 2030.

Sumant Sinha, Founder, Chairman, and CEO of ReNew in a statement said, "Today's agreement marks an exciting time for ReNew. Significant financing is needed to reach global climate targets and this agreement helps secure the capital needed. We look forward to collaborating with Asian Development Bank over the coming years to meet India's target of achieving 500 GW of renewable capacity by 2030.

Suzanne Gaboury, ADB Director General for Private Sector Operations, said, "This collaboration between ADB and ReNew envisages the continued cooperation of both organizations over the next five years, by providing a framework for working together towards shared goals and to deliver on the results envisioned in combating climate change.

The memorandum of understanding signed with ADB reaffirms ReNew's position as the leading renewable energy player in India, it stated.

The company has already invested around USD 8 billion in the clean energy space and the MoU will enable ReNew to raise further funding for renewable energy projects.

ReNew is a leading decarbonization solutions company listed on Nasdaq. It has a clean energy portfolio of 13.8 GWs as of September 30, 2023.