Shimla, Dec 29 (IANS): Hydropower public sector SJVN has secured Rs 10,000 crore ($1.2 billion) construction finance facility to fund upcoming renewable power projects from domestic and international lenders, its Chairman and Managing Director Nand Lal Sharma said on Friday.

The finance is a unique and first-of-its-kind transaction undertaken by a PSU entity.

Sharma said SJVN Green Energy Ltd (SGEL), a wholly owned subsidiary of SJVN Ltd, undertook this initiative in association with SBI Capital Markets Ltd (SBI CAPS).

SBI CAPS acted as the sole advisor and arranger for the transaction on behalf of SGEL. Construction Finance attracted tremendous response from lenders and was over-subscribed.

After deliberations, proposals from five banks -- Deutsche Bank, the State Bank of India, Punjab National Bank, the Bank of India and MUFG Bank -- were accepted. This credit facility is of revolving nature that allows SJVN to draw down funds on an ongoing basis as per the construction requirements of its projects.

This facility will enable SJVN in fast-tracking the development of its under-construction renewable projects. The facility will enable SJVN in contributing its bit towards the government of India’s target of achieving 500 GW renewable energy by 2030.

“We are exhilarated to have secured this facility from five leading banks, which underscores the financial community's recognition of our commitment to a greener and more sustainable future,” said Sharma.

Currently SJVN’s RE portfolio stands at 5090.5 MW out of which 179.5 MW is under operation, 1,860 MW is under construction and 3,051 MW is under various stages of implementation.