VA Tech Wabag Ltd, a water-technology company, has raised debt and equity funding from International Finance Corporation (IFC), Tata Cleantech Capital and EverSource Capital.
The funding has been raised for financial closure of an HAM (hybrid annuity model) project received from Kolkata Metropolitan Development Authority, the company said in a statement.
Wabag had signed a Rs 575 crore HAM concession agreement under the Namami Gange programme administered by the National Mission for Clean Ganga (NMCG).
As per the agreement, Wabag will execute engineering, procurement and construction (EPC) of this project over 24 months followed by O&M of 15 years.
The EPC portion will be funded by a mix of NMCG grant, equity and debt. Of the total cost, 40% of EPC expense will be funded by NMCG grant during construction and the rest 60% by debt and equity.
For the debt part, the project has raised capital from World Bank’s IFC and Tata Cleantech Capital. For equity, it has raised capital from Kathari Water Management Pvt Ltd, a wholly owned subsidiary of EverSource Capital, the fund manager for Green Growth Equity Fund (GGEF).
“In India, there is a significant requirement of world-class assets for water treatment, recycling and desalination. Kathari will scale up investments to develop a water platform of global standards in India,” said Dhanpal Jhaveri, chief executive officer of EverSource Capital.
Yes Securities' sustainable investment banking team acted as an exclusive adviser to Eversource Capital.