International Finance Corporation (IFC), the private sector lending arm of World Bank, has invested $35 million in sector-focused NBFC PTC India Financial Services Ltd (PFS) through non-convertible debentures (NCDs), the company said in a release.
PFS, an infrastructure finance firm, has issued NCDs for 10 years to IFC.
It will use the funding to boost long-term financing for renewable energy, particularly in wind and solar projects and will generate around 129 GWh of clean energy over five years.
This is in addition to the senior loan facility worth $50 million that IFC provided to the company in 2011.
“PFS’ focus is on renewable energy space in India. We are committed to increase the renewable energy generation base in the country," said Pawan Singh, CFO, PFS.
PFS is promoted by PTC India Ltd (formerly Power Trading Corporation), the largest power trading firm in the country. The company focuses on financing projects in India across the energy value chain and renewable energy comprises 40 per cent of its portfolio.
“With a strong sponsor like PTC, PFS has an advantage in reaching out to energy firms, which will allow it to rapidly expand its green financing,” said Giri Jadeja, regional industry head, IFC.
PFS—a public listed non-deposit taking, non-banking finance company—raised funding from Goldman Sachs and Macquarie in 2008.
“Infrastructure finance companies like PFS can fill a critical funding gap for renewable energy projects in India and these investments will help lower carbon footprint, create jobs and boost growth," said Vivek Pathak, IFC director for Asia-Pacific.
Shares of PFS closed at Rs 42 each, up 1.82 per cent on BSE in a strong Mumbai market on Wednesday.
IFC has been actively investing in the renewable energy space in India by way of direct financing, both as debt and equity. Its portfolio companies have set up over 2 GWh of renewable energy projects in the country.