IFC may lend $50M to IDFC PE-backed Green Infra

IDFC Private Equity-backed Green Infra Ltd (GIL), a Delhi-based company developing renewable energy projects in India, may raise $50 million (Rs 274.5 crore) in senior debt from International Finance Corporation (IFC), the private sector investment arm of the World Bank.

“IFC is considering providing an overall envelope for debt funding in the amount of $50 million, to be used over the next two years for various projects that GIL is developing,” the corporation said.

The first tranche of this financing amounting to $11 million is expected to be provided to two subsidiaries of GIL, which are developing 20 MW and 5 MW capacity, respectively, for solar power generation in Rajasthan. Overall, the Rajasthan project may cost around $45 million and is expected to get commissioned in February 2013. Both the subsidiaries have entered a 25-year power purchase agreement with NTPC Vidyut Vyapar Nigam Ltd, a public agency designated by the Indian government for the purchase and resale of power under the first phase of the Jawaharlal Nehru National Solar Mission – a wholly owned subsidiary of NTPC.

Other GIL projects which IFC may consider for financing under this facility include a 99 MW wind energy project in Karnataka, a 31.5 MW wind energy project in Tamil Nadu and a 12 MW run-of-the-river hydropower project in Himachal Pradesh.

GIL currently has an operational capacity of 238.7 MW, spread across Maharashtra, Tamil Nadu, Karnataka, Rajasthan and Gujarat. The company aims to expand its portfolio to 2-2.5 GW in 2-3 years and 3.5-4.0 GW in 4-5 years. It currently has 286.5 MW worth of projects under development.

Founded in 2008, GIL is a joint venture between Emergent Ventures India Pvt Ltd and IDFC Private Equity. It develops renewable energy projects across sub-sectors such as wind, solar, hydro and bio-mass. Last August, IDFC PE infused Rs 80 crore in GIL and prior to that, it had also invested Rs 360 crore in the company.

IDFC PE is a fully owned subsidiary of IDFC and presently manages assets of around $1.3 billion through three infrastructure funds and has made 32 investments across 28 companies.

IFC has been a fairly aggressive investor in renewable energy assets in India. It has already invested in other renewable energy firms such as Shalivahana Green Energy Ltd, Auro Mira Energy Company Pvt Ltd and Bhilwara Energy Ltd.

Recently, it invested $66.32 million in Super Religare Laboratories Ltd, along with NYLIM Jacob Ballas India Fund III. Its investment portfolio also includes Modern Dairies Ltd, Bajaj Hindusthan Sugar & Industries Ltd, Suguna Poultry Farm Ltd in food products sector; AU Financiers India Pvt Ltd and Magma Fincorp Ltd in consumer finance sector; Max Healthcare Institute Ltd and Rockland Hospitals Ltd in healthcare sector, among others.

(Edited by Sanghamitra Mandal)

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