International Finance Corporation (IFC), the private sector investment arm of the World Bank, is lending $59 million to the IDFC Alternatives-controlled renewable energy firm Green Infra Ltd, as per a disclosure by IFC.
IFC proposes to provide ‘A’ loan of up to $59 million to the project while the balance debt financing of up to $118 million is proposed to be arranged from other lenders by Green Infra or through the IFC syndicated loan products, the disclosure said.
The first tranche of this $59 million debt funding, which is to be used over the next one year, would be provided to its wholly owned subsidiary Green Infra Corporate Solar Ltd (GICSL) that is setting up four wind projects with a capacity of 182.4 megawatt (MW) in Rajasthan and Madhya Pradesh.
The plants are expected to be commissioned by March 31, 2015 and the off-takers for the plants are going to be respective state distribution companies where the plants will be located.
Green Infra, with an installed capacity of 450 MW across five states namely Maharashtra, Karnataka, Tamil Nadu, Rajasthan, and Gujarat, is one of the largest independent renewable energy players in India.
IFC is an active investor in the energy space and recently provided Rs 201.9 crore ($34 million) to ACME Solar Energy Pvt Ltd, part of the ACME Group, for its Rajasthan project.
Green Infra is owned by IDFC PE Fund II & Fund III, which are managed by IDFC Alternatives Limited. It also has quasi-equity financing from the CDC Group (formerly the Commonwealth Development Corporation) and the Piramal Group.