IFC to back Azure Power Rooftop's expansion plan with $135-mn investment

Azure Power Rooftop (GenCo) is planning to raise around $135 million from International Finance Corporation (IFC), which would help the company mobilise a portion of its loans.

The proposed investment involves a debt refinancing of up to $45 million to the company and the mobilisation of senior loans of up to $90 million, said IFC.

Azure Power Rooftop Private Limited (Azure roof) is a wholly owned subsidiary of IFC’s existing client Azure Power Global Limited. 

Azure is a leading solar power company in India with a track record of robust execution and strong growth. Azure has the in-house capacity to undertake engineering, procurement & construction (EPC) as well as operations & maintenance (O&M) services for all its solar power plants.

The proceeds of the IFC investment would be used to fund the construction of greenfield solar projects across India.

Azureroof proposes to scale up its portfolio of rooftop and small-scale ground-mounted solar projects designed, installed and operated for commercial and industrial (C&I) as well as government clients across India. This portfolio is expected to have a cumulative capacity of 200 Mw. 

As of November 2017, Azure has a well-diversified portfolio of around 1.6 Gw of committed and operational solar projects in more than 20 states across India. 48 out of all those projects are operational and 20 are under construction.

IFC's participation in the project helps affirm the viability of the rooftop solar sector in India and seeks to encourage private sector investment in distributed solar power development, said the World Bank's investment arm.