IFC to fund $125 mn in equity, debt to 4 firms

International Finance Corporation(IFC), an arm of the World Bank, is planning to invest around $75 million in three companies — NSL Renewable Power Pvt Ltd, Vishwa Infrastructure and Services Pvt Ltd and Paradeep Phosphates Ltd.

The proposed investments will be in form of equity and debt. Besides,IFC is partnering PTC Financial Services Ltd, a non-banking financial corporation established in 2006 by Power Trading Corporation, to support smaller renewable energy projects, by providing it $50 million.

NSL Renewable Power Ltd, in which IFC is to invest $20 million, is a holding company with a pipeline of medium & small hydro power and wind power projects under development. It has about 110 Mw of existing operating assets and more under development.

IFC has also said it would provide a loan of $50 mn to Orissa-based Paradeep Phosphates Ltd (PPL), which in turn has lined up capex of around $120 million. PPL is engaged in production of 1.2 million tonnes per annum of fertiliser. PPL also produces intermediary products like phosphoric acid and sulphuric acid, its critical raw materials.

PPL,operating at 100 per cent capacity since 2003, has undertaken a three-year expansion plan to increase its production capacity of di-ammonium phosphate (DAP) and nitrogen, phosphorus and potash NPK fertilisers by 25 per cent.

The other loan approved by IFC is $5.5 mn to Vishwa Infrastructure and Services Pvt Ltd, which has lined up capex of $39 mn,of which $32 million will be funded through central government programmes and the balance has to be funded through debt/equity.