One of India’s rapidly emerging renewable energy project developers, Hero Future Energies, has announced plans to raise funds through the sale of equity stake in the company.
According to media reports, Hero Future Energies – part of the Hero Group – is looking to sell equity in the company to raise $150 million (Rs 1,000 crore). The company is reportedly in talks with CDC Group, an institution owned by the UK government, and the International Finance Corporation (IFC). The company plans to use these funds to finance its renewable energy projects pipeline.
Hero Future Energies has raised around $44 million (Rs 300 crore) through non-convertible debentures to finance the development of wind energy projects. The debentures were issued with a certification from the Climate Bonds Initiative. The green bond was India’s first bond certified by the Climate Bonds Initiative. Proceeds from the green bond will be used for setting up wind energy projects in the states of Madhya Pradesh, Telangana, and Andhra Pradesh with a cumulative capacity of 521.5 MW.
Hero Future Energies plans to increase its renewable energy portfolio to 2.5 GW over the next few years. The company currently operates 40 MW of solar power projects, while another 90 MW capacity is under construction. It also operates 220 MW of wind energy capacity across various states in India and is working on an additional capacity of 150 MW. The company claims to have 1.1 GW of wind energy capacity in pipeline.