Mumbai, India: IFC, a member of the World Bank Group, has extended a 7-year longterm loan of Rs. 1,000 crore to Aditya Birla Finance Ltd. (ABFL), the NBFC arm of Aditya Birla Capital Limited (ABC). ABFL is a well-diversified non-banking finance company (NBFC) with a long term credit rating of AAA from both ICRA as well as India Ratings. ABFL will use the proceeds to finance renewable energy projects and help the country move towards its target of 175 GW of renewable energy capacity by 2022.
The IFC green loan, sanctioned in March 2018, is an Indian rupee loan under Track III of the Reserve Bank of India’s guidelines for external commercial borrowings.
India’s power sector is one of the largest in the world, but the country’s per capita consumption of electricity is less than a fourth of the global average. The government wants to provide electricity 24×7 to the entire country by 2019, while minimizing the impact on the environment. For that, it plans to increase the renewable energy capacity to 175 GW, comprising solar, wind, biomass, and small hydro, by 2022.
“We are delighted to partner with IFC, with which we have a very good relationship. This is not just about a loan but also about being able to access the expertise that IFC has in this area and together making a small difference to the energy requirements of our country,” said Mr. Ajay Srinivasan, Chief Executive of Aditya Birla Capital.
With this funding, IFC will help ABFL develop its renewable energy program by providing longer-tenor financing, knowledge sharing, and setting of standards. IFC brings to the partnership its deep understanding of the renewable energy sector.
“India is yet to have its entire population covered by 24X7 electricity, which is a critical development gap we want to help bridge in a manner that is friendly to the environment. Aditya Birla Capital’s business mix and market presence are aligned to our priorities and we consider the company a potential strategic partner in development,” said Jun
Zhang, country head, International Finance Corporation, India.
The project complements IFC’s India Country Strategy for FY2017-2021, which commits to enabling electricity access for 60 million people, creation of 25 GW of installed renewable capacity, and contributing 11 percent to the total energy-related greenhouse gas avoidance potential.
About Aditya Birla Finance Ltd., a 100% subsidiary of Aditya Birla Capital Limited
Aditya Birla Finance Limited (“ABFL”), is a well-diversified financial services company in India offering lending and wealth management solutions to a diversified range of customers across the country. ABFL is registered with RBI as a non-deposit accepting non-banking finance company (“NBFC”).
For the Quarter ended 30th June 2018, ABFL’s loan book was Rs. 444 billion. Along with its growth. This is reflected in its long-term credit rating of AAA (Stable) by ICRA and AAA (Stable) by India Ratings and short term credit rating of A1+ by ICRA & India Ratings.
About Aditya Birla Capital
Aditya Birla Capital Limited (ABCL) is the holding company of financial services businesses of the Aditya Birla Group. With a strong presence across the life insurance, asset management, lending, general insurance broking, wealth management, equity, currency and commodity broking, online personal finance management, housing finance, pension fund management and health insurance business, ABCL is committed to serving the end-to-end financial services needs of its retail and corporate customers. Anchored by more than 16,000 employees, ABCL has a nationwide reach and more than 2,00,000 agents / channel partners. For more information visit www.adityabirlacapital.com
Aditya Birla Capital is a part of the Aditya Birla Group, a US$ 44.3 billion Indian multinational, in the league of Fortune 500. Anchored by an extraordinary force of over 120,000 employees, belonging to 42 nationalities, the Aditya Birla Group operates in 35 countries across the globe.
About IFC IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. IFC works with more than 2,000 businesses worldwide, using its capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, IFC delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org.
Source: mumbainewsnetwork.blogspot
