Ostro Energy, an emerging wind energy developer in India, has secured debt financing from the International Finance Corporation for two large-scale wind energy projects.
The International Finance Corporation (IFC) provided debt-finance for two wind energy projects planned by Ostro Energy in the southern Indian state of Andhra Pradesh, with a combined installed capacity of 197.4 MW.
Total cost of the two projects will be around $246 million, of which around 72% will be provided by IFC in terms of debt financing. IFC shall directly provide an ‘A’ loan worth $59 million, and will mobilise another $118 million.
The two projects will be developed by Suzlon Energy, an integrated wind energy solution provider in India, which will be responsible for land acquisition, supply of wind turbines, and commissioning.
Ostro Energy currently has an installed wind energy capacity of 76 MW in India, but is looking to increase its installed base rapidly. The company has projects with cumulative installed capacity of 325 MW under construction across the states of Rajasthan, Madhya Pradesh, and Andhra Pradesh.
Ostro Energy is backed by private equity fund Actis which invested $230 million in the company last year. Ostro Energy placed an order for 200 MW of wind energy projects with Gamesa last year. The projects will be developed in Madhya Pradesh and Andhra Pradesh. Gamesa will supply G07-2.0 metre turbines for the two projects. The project in Andhra Pradesh will be commissioned by December 2016 while the project in Madhya Pradesh will be operational by February 2017.
The wind energy project developer also placed an order for 100 MW wind energy project planned in Madhya Pradesh with Indian wind turbine manufacturer Inox Wind. The project is part of a larger 200 MW project.