IIFCL open to raise fund via green bonds to finance renewal energy projects – EQ Mag Pro

New Delhi : State-owned India Infrastructure Finance Company Ltd (IIFCL) on Friday said it is open to explore green bond route to raise funds to finance renewal energy sector projects.

“Our subsidiary called IIFCL Projects is a certifying agent for green bonds for India. So, we are already into the system. The question is how it will help us further the green initiative by issuing bonds. As long as the company is getting suitable funds to invest in such bonds of IIFCL, we would definitely be open to that,” IIFCL managing director P R Jaishankar said.

Green bonds are just like any regular bond with a key difference that the money raised from investors is used to finance projects that have a positive environmental impact such as renewable energy and green buildings.

Currently, 15 per cent of total finance of the company is going towards renewal projects in the country.

Going forward, he said, this percentage should go up as there is a lot of emphasis by the government on the renewal energy.

Jaishankar said the company is looking at diversifying its funding mode and will explore Alternative Investment Fund (AIF).

IIFCL, for the first time ever, ventured into investment in infrastructure bonds being issued by project companies in last financial year.

IIFCL has invested Rs 975 crore in project bonds, which includes Rs 325 crore in bonds issued by a renewable energy Infrastructure Investment Trusts (InvITs).

“IIFCL’s investment in bonds would not only lead to further improvement in the company’s asset quality but would also boost the availability of longer-tenor debt finance for infrastructure projects,” he said.

IIFCL is also eyeing lending opportunities to Infrastructure Investment Trusts (InvITs) this year and aims to further strengthen balance sheet and improve its asset quality, he added.

Source: PTI