International Finance Corporation (IFC), the private sector lending arm of the World Bank, has joined hands with PTC India Financial Services Ltd (PFS) and Indian Renewable Energy Development Agency Ltd (IREDA) to provide infrastructure financing for renewable energy projects in India, according to a press release.
PFS and IREDA have signed IFC’s master cooperation agreement (MCA), joining the league of 25 other financial institutions across the world to do so.
“IFC and IREDA will play a catalytic role in private sector development by providing long-term risk capital where it is needed most...With this partnership, we can respond more swiftly to private sector financing needs and boost job creation,” said Hyun Chan Cho, IFC’s Head for Infrastructure and Natural Resources – Asia Pacific.
Since the creation of MCA, signatories have co-invested more than $3 billion with IFC to support private sector development across the world.
“This partnership will deepen our cooperation with IFC and other development financiers in areas such as renewable energy,” R M Malla, managing director and CEO of PFS, said in the statement.
“The partnership will help IREDA increase its portfolio in financing renewable energy projects, to support the government of India’s plans to establish up to 175 gigawatts of renewable energy projects over the next seven years,” said K S Popli, Chairman and Managing Director, IREDA.
Recently, Italian bank Cassa Depositi e Prestiti partnered with IFC to provide financing to private companies and boost growth and jobs in emerging markets.
As of June 30, 2014, IFC's committed portfolio in India stood at $4.7 billion, making India IFC's largest portfolio exposure.
(Edited by Joby Puthuparampil Johnson)