NewZNew (Chandigarh) : IFC, a member of the World Bank Group, has subscribed to $35 million worth of 10-year non-convertible debentures issued by infrastructure finance company, PTC India Financial Services. The company will use the funds to boost long-term financing for renewable energy, particularly in wind and solar projects.
The investment will help generate an estimated 129 GWh of clean energy over five years. PFS is focused on financing projects in India across the energy value chain, and renewable energy comprises 40 percent of its portfolio. In 2011, IFC had provided PFS a senior loan of $50 million to fund four renewable energy projects.
“The funds from the issue will augment our long-term funding resources and help diversify our borrowing profile,” said Pawan Singh, Chief Financial Officer, PFS. “The major focus of PFS remains on renewable energy space in India and we are committed to increase the renewable energy generation base in India.”
In April, PFS became the first institution in India, and the twenty-sixth globally, to sign IFC’s master cooperation agreement. This agreement has helped standardize steps that lenders take when co-financing projects with IFC. Signatories have co-invested more than $3 billion since its creation in 2009.
“With a strong sponsor like PTC, country’s largest power trading company, PFS has a natural advantage in reaching out to energy companies, which will allow it to rapidly expand its green financing,” said Giri Jadeja. Regional Industry Head. Financial Institutions Group, IFC.
“Infrastructure finance companies like PFS can fill a critical funding gap for renewable energy projects in India,” said Vivek Pathak, IFC Director for Asia-Pacific. “In addition, these investments will help lower carbon footprint, create jobs and boost growth.”
IFC has a strong focus on renewable energy in India and plays an important role by providing direct financing, both as debt and equity, to sponsors with a long-term commitment to renewable energy. IFC portfolio companies have set up more than two gigawatt of renewable energy projects in India.