Tata Cleantech Capital Limited (TCCL), a Joint Venture of Tata Capital Limited and IFC Washington (World Bank Group) has signed a Memorandum of Understanding (MoU) with Indian Renewable Energy Development Agency (IREDA) to promote the cause of Renewable Energy in India.

Both the organisations are specialist Cleantech Financing Institutions deeply invested in their efforts to promote development of renewable energy in India. This collaboration will help both the institutions share opportunities, distribute risks and leverage their respective underwriting capacities.

While this arrangement will help TCCL to syndicate and down-sell transactions co-underwritten and co-financed with IREDA, the latter will be able to churn its portfolio and reach its objective of a ‘Development Institution' by extending loans to newer projects and newer customers.

The association between TCCL and IREDA will further help in consortium financing. Both the institutions aim to participate in consortiums led by each other. With co-financing transactions, there will be greater alignment of key terms between the two organisations and this will help in faster closure of consortium documentation.

(Continued on the next page)