Indian Renewable Energy Development Agency’s (IREDA) shares jumped over 2% after the state-owned renewable sector non-banking finance company announced inking a pact with Punjab National Bank (PNB) to co-finance green energy projects across the country.

IREDA’s shares hit an intraday high of Rs 182.30, 2.44% higher than its previous closing price on the National Stock Exchange (NSE). The stock closed 0.14% higher at Rs 178.20. 

According to the exchange filing dated February 19, IREDA’s General Manager R C Sharma and PNB’s Chief General Manager Rajeeva signed a Memorandum of Understanding (MoU) at IREDA’s office in New Delhi to advance renewable energy initiatives nationwide. 

The MoU comprises various provisions, including joint lending, loan syndication and underwriting, management of Trust and Retention Account (TRA) for IREDA borrowers, and working towards competitive terms of sanction, including pricing on IREDA borrowings.

Pradip Kumar Das, CMD of IREDA, said that through the MoU and prior agreements with other leading financial institutions, it is well-positioned to fund large-scale renewable energy projects, aligning with the country’s plans to achieve 500 GW non-fossil fuel-based electricity generation capacity by 2030.

Through the collaboration, IREDA and PNB can also invest in bonds issued by either organisation. The collaboration further strengthens IREDA’s successful partnerships with other prominent financial institutions.