IFC subscribes to $35 million worth of 10-year non-convertible debentures for renewable energy projects in India

The International Finance Corporation (IFC) has announced its subscription to US$35 million worth of 10-year non-convertible debentures issued by infrastructure finance company, PTC India Financial Services (PFS).

The company will use the funds to boost long-term financing for renewable energy, particularly in wind and solar projects.

The investment will help generate an estimated 129 GWh of clean energy over five years. PFS is focused on financing projects in India across the energy value chain, and renewable energy comprises 40% of its portfolio.

Pawan Singh, CFO of PFS, has commented:

"The funds from the issue will augment our long-term funding resources and help diversify our borrowing profile. The major focus of PFS remains on renewable energy space in India and we are committed to increase the renewable energy generation base in India."

In 2011, IFC had provided PFS with a senior loan of US$50 million to fund four renewable energy projects.

In April, PFS became the first institution in India, and the twenty-sixth globally, to sign IFC's master cooperation agreement. This agreement has helped standardize steps that lenders take when co-financing projects with IFC. Signatories have co-invested more than US$3 billion since its creation in 2009.

IFC has a strong focus on renewable energy in India and plays an important role by providing direct financing, both as debt and equity, to sponsors with a long-term commitment to renewable energy. IFC portfolio companies have set up more than 2 GW of renewable energy projects in India.