Reliance Industries Ltd (RIL) said that it had inked a $736 million-equivalent green loan to support its takeover of Norwegian solar panel producer REC Solar Holdings, establishing the Indian conglomerate’s first such financing.

Australia and New Zealand Banking Group (ANZ), DBS Bank, Credit Agricole, HSBC, and MUFG were among the bankers who participated in this green loan facility, which was signed on Nov 29.

A $250 million six-year term loan, a $150 million working capital credit, and a $460 million five-year bank guarantee facility comprise the lending at an interest margin of around 120bps–125bps over Libor.

The loan was obtained by Singapore-based REC Solar and is secured through guarantees from Reliance New Energy Solar, a fully owned subsidiary of Reliance Industries.

The credit was drawn down on December 1, following which all outstanding liabilities at REC Solar were cleared, and the transaction was finalized, according to RIL.

Reliance inked the formal deal to acquire REC Solar for $771 million from its owners, China National Bluestar (Group) Co Ltd, on 10 October. 

On the same day, Reliance declared the procurement of a 40% share in SP Group company, Sterling and Wilson Solar.