International Finance Corporation (IFC), the private sector investment arm of the World Bank, is lending $14.3 million to PE-backed Azure Power India Private Limited’s renewable energy arm Azure Clean Energy Private Limited, as per a disclosure.
IFC proposes to provide ‘A’ loan of up to $14.3 million (Rs 86 crore) equivalent for the development of a 40 MW solar power plant in Rajasthan.
Azure Clean has been set up for the sole purposed of construction, operation and maintenance of the aforesaid project and will not have any other operations.
The project, which is expected to generate up to 70GWh from 2015, is expected to be commissioned by April 28, 2015.
Power generated from this project will be sold to state-run Solar Energy Corporation of India.
“IFC will provide an up to 15-year loan with a debt repayment profile that matches the cash flows of the project and the long-lived nature of the assets being financed,” IFC said in the disclosure.
Earlier in July last year, Azure Power had raised $3 million loan for one of its subsidiaries to construct a rooftop solar project in Gujarat.
Founded by Inderpreet Wadhwa, Azure is an independent power producer which builds, owns and operates solar power plants in India. Other key investors in Azure include Helion Venture Partners and Foundation Capital.
IFC has been an active investor in the clean energy space and as of the end of financial year 2012-13, invested over $1 billion in India’s renewable energy and clean technology sectors. IFC follows July to June calendar.
Recently, IFC launched a $2.5 billion onshore bond programme denominated in Indian currency to fund infrastructure projects in the country.
(Edited by Joby Puthuparampil Johnson)