International Finance Corporation (IFC) is lending $50 million to PTC India Financial Services (PFS), the financial services arm of the country’s largest power trading company PTC India, to push renewable energy in the country. The long-term debt to PTC India Financial Services of $50 million in the form of a senior loan will be used exclusively for lending to companies and projects in the renewable energy space. PTC India Financial Services was given the infrastructure financial company (IFC) status by the Reserve Bank of India (RBI) last year.
IFC, the private investment arm of World Bank, has invested in several renewable energy companies in India in last one year. These include Bhilwara Energy, Auro Mira Energy, Azure Power, Applied Solar Technologies, among others.
PTC Financial Services has filed for an initial public offering last year. The company has been backed by investors including Macquarie India Holdings Limited and Goldman Sachs, who picked up the stake in early 2008. Both the financial investors had brought in around Rs 77 crore each and hold a 11.2% stake each.
For the six months ended September’10, PTC Finance had net profit of Rs 25.5 crore, almost the
same level as the year ended March’10.
As per its DRHP, PTC Financial Services disbursed its first loan of Rs 20 crore in March 2009 and has since then grown its loan as of September 30 to Rs 604.8 crore across 12 companies with projects representing 7,529 MW of aggregate power generation capacity.