Current Affairs - Finance

REC Limited, a major lender in the power sector, secured a 5-year green loan of 31.96 billion Japanese yen (approximately $200 million) through Deutsche Bank’s Gift City branch. This funding is dedicated to financing environmentally sustainable projects across India. The initiative is part of REC's commitment to advancing green energy finance and sustainable development, aligning with global efforts for environmental responsibility.

India provided a $2.5 million line of credit to Guyana for the installation of a solar photovoltaic power plant at Cheddi Jagan International Airport. The agreement, facilitated by the Export-Import Bank of India, stipulates that at least 75% of the project's contract value will be sourced from Indian suppliers. This initiative underscores India's commitment to promoting renewable energy infrastructure in partner countries, enhancing energy security, and fostering bilateral relations through strategic investments in sustainable development projects.

The Asian Development Bank (ADB) partnered with Aadhar Housing Finance Limited (AHFL) through a $60 million financing agreement aimed at providing housing loans to low-income women in India. This initiative addresses the financing gap in affordable housing and promotes financial inclusion, particularly in states like Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh, and West Bengal. ADB's support underscores its commitment to inclusive and sustainable development across Asia and the Pacific region, focusing on critical sectors such as housing and infrastructure.

Life Insurance Corporation of India (LIC) raised its stake in IDFC First Bank to 2.68% by acquiring additional shares through a private placement offer. This move underscores LIC's strategy to strengthen its investment portfolio in the banking sector, enhancing its position as a major shareholder in IDFC First Bank.

Project Nexus is a collaborative effort between RBI, BIS, and central banks of ASEAN countries to enhance the efficiency, speed, and cost-effectiveness of retail cross-border payments. Scheduled to launch by 2026, this initiative will integrate domestic fast payment systems across Malaysia, the Philippines, Singapore, Thailand, and India, marking a significant advancement in international payment systems.