The renewable energy arm of one of India’s largest industrial conglomerates, the Hero Group, has secured a major financial boost from the International Finance Corporation.
The International Finance Corporation and IFC Global Infrastructure Fund have invested a total of $125 million in Hero Future Energies, the renewable energy project developer owned by the Hero Group. The two entities will acquire an undisclosed stake in Hero Future Energies.
The equity funding will help the company set up 1 gigawatt of renewable energy capacity over the next 12 months. The company has set a target to have 2.7 gigawatts of renewable energy capacity by the end of this decade. At present, the company has 300 megawatts of operational wind and solar power capacity across 12 Indian states.
Last year, media reports covered the news that Hero Future Energies was in talks with IFC and CDC Group, an institution owned by the UK government, to raise $150 million. It is not clear if the latest round of funding is the result of those negotiations.
Also last year, Hero Future Energies 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.
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