Reliance raises $736 mn in green loan to fund REC Solar acquisition

Reliance Industries (RIL) on Monday has raised $736 million in green loan to fund the acquisition of solar panel maker, REC Solar Holdings. This will be first such financing for the Mukesh Ambani-owned company.

REC Solar is the borrower while Reliance New Energy Solar is the guarantor, as per local media reports.

The loan is a rare acquisition financing from RIL which opted for term loans instead of a short-term bridge facility, media reports said.

In October, Reliance announced its acquisition of 40 per cent stake in Sterling and Wilson Solar, a Shapoorji Pallonji group.

The acquisitions is part of RIL's goal to become a net carbon zero company by 2035 with an investment of $10 billion.