IFC may invest $40 million in Tata Cleantech Capital to promote renewable energy projects
KOLKATA: International Finance Corporation may 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. Money raised through green bonds are earmarked towards financing environment-friendly projects and TCCL would use the proceeds of IFC investment to finance the wind, solar and other climate-related projects.
“The proposed investment is expected to lead to the reduction in greenhouse gas emissions through an incremental capacity addition of renewable energy projects,” World Bank’s investment arm said in a disclosure.
TCCL 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 space.
IFC said 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 mobilisation 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.
Source:ET
