Luthra and Luthra Law Offices India has advised the Indian Renewable Energy Development Agency Limited (IREDA) on securing a ¥28 billion syndicated sustainable term loan from the SMBC GIFT City branch — one of the most significant yen-denominated ECB transactions by an Indian green finance institution. The facility agreement was executed on 30 March 2026. JSA advised the lender, with Baker McKenzie Wong & Leow providing England law counsel on the transaction.
Introduction
IREDA entered into a facility agreement with Sumitomo Mitsui Banking Corporation (SMBC) to raise an external commercial borrowing (ECB) amounting to ¥28 billion, including a greenshoe option of ¥12 billion, to strengthen its funding base and expand lending capacity. The GIFT City branch of SMBC extended the loan facility, while its Singapore branch acted as mandated lead arranger and bookrunner, sustainability co-ordinator, and facility agent. The proceeds from the facility will be utilised to support sustainable financing initiatives, and the facility is structured as a five-year unsecured loan with a bullet repayment at maturity.
IREDA is a specialised Navratna public financial institution operating under India’s Ministry of New and Renewable Energy, established in 1987 with a primary mission to promote the development and adoption of renewable energy and energy efficiency across India by providing financial assistance to eligible projects.
Deal Value
Luthra and Luthra Law Offices India, Baker McKenzie Wong & Leow, and JSA counselled parties involved in IREDA’s JPY 28 billion (USD 173.6 million) sustainable loan. The funding includes a greenshoe option of JPY 12 billion, giving the company flexibility to scale borrowing based on requirements.
Legal Teams Involved
Luthra and Luthra Law Offices India — Counsel to IREDA (Borrower)
The team advised IREDA on all aspects of the transaction, including external commercial borrowing and NBFC regulatory structuring, transaction documentation, alignment with the sustainable finance framework, and the negotiation of key financing terms tailored to IREDA as a government-owned NBFC.
- Girish Rawat — Senior Partner
- Zeeshan Ali Khan — Partner
- Pranav Dwivedi — Associate
JSA — Counsel to the Lender (SMBC)
JSA represented the lender with partner Utsav Johri leading the team, which included partner Megha Upadhyaya, counsel Neeati Narayan, and associate Priyanshi Srivastava.
- Utsav Johri — Partner
- Megha Upadhyaya — Partner
- Neeati Narayan — Counsel
- Priyanshi Srivastava — Associate
Baker McKenzie Wong & Leow — England Law Counsel
Baker McKenzie Wong & Leow counselled on England law. Further details of the advising team were not disclosed.
Significance and Impact
This transaction carries significance across multiple dimensions — regulatory, financial, and strategic. The scope of advice to IREDA spanned ECB and NBFC regulatory structuring, transaction documentation, sustainable finance framework alignment, and the negotiation of key financing terms tailored to IREDA as a government-owned NBFC — a combination that reflects the layered complexity inherent in cross-border sovereign-adjacent borrowings routed through GIFT City.
IREDA stated that the loan is expected to enhance its presence in international financial markets while providing a cost-efficient and resilient source of funds amid evolving global geopolitical conditions. For IREDA, this facility strengthens its capacity to disburse loans and support the government’s target of achieving 500 GW of non-fossil fuel-based energy capacity by 2030.
The involvement of GIFT City as the lending conduit also underscores the growing role of India’s international financial services centre in channelling yen-denominated foreign capital into domestic green infrastructure. The successful signing of this ECB facility is a positive signal for the Indian renewable energy sector, demonstrating that international lenders continue to have strong confidence in India’s green energy transition and in IREDA’s creditworthiness as a financial intermediary.
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The ¥28 billion SMBC GIFT City syndicated sustainable term loan marks a notable cross-border ECB milestone for IREDA, bringing together three law firms across Indian and English law jurisdictions. Luthra and Luthra Law Offices India led borrower-side counsel, JSA advised the lender, and Baker McKenzie Wong & Leow provided England law guidance. The proceeds from the borrowing will be deployed to support renewable energy and sustainability-focused projects, in line with India’s clean energy transition goals.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. It is based on the details provided and publicly available sources.
