International Finance Corporation to Invest 40 Million Dollars in Tata Cleantech Capital to Promote Renewable Energy Projects

World Bank’s private-sector arm will use the money raised through green bonds to financing environment-friendly Renewable Energy Projects.

International Finance Corporation is planning to invest up to $40 million in Tata Cleantech Capital Ltd’s (TCCL) green bond issue to help the company expand long-term environment-friendly infrastructure funding. The money raised through green bonds will be assigned towards financing environment-friendly Renewable Energy Projects and TCCL would use the proceeds of IFC investment to finance the solar, wind and other climate-related projects.

In a disclosure, the World Bank’s private-sector arm mentioned that the proposed investment is expected to lead to the reduction in greenhouse gas emissions through an incremental capacity addition of renewable energy projects.

Tata Cleantech Capital is a joint venture between Tata Capital with 80.5 per cent holding and IFC with 19.5 per cent interest. The non-bank lender provides finance and advisory services in the Renewable Energy Projects.

IFC also mentioned that it would subscribe to TCCL’s green bonds in one or more tranches. This long-term funding is expected to supplement the company’s own mobilization of long-term funding from other sources as well.

The Mumbai-based company has begun operations in FY2013-14 and has assets under management of about Rs 2400 crore at the end of March 2017.

The increased use of green resources in Renewable Energy Projects is expected to reduce India’s dependence on expensive imported fossil fuels. India has set a target to reduce ’emissions intensity’ of its GDP by 33-35 per cent by 2030 from the 2005 level.

Source: ET