IFC to invest around $150 million in Aditya Birla Finance

The International Finance Corporation (IFC) is planning to invest upto $150 million in Aditya Birla Finance Ltd (ABFL). 

The proceeds shall be used by ABFL to fund solar projects in select states.

IFC proposes to invest up to $150 million (INR equivalent) through an INR ECB loan issued under Track III of RBI’s ECB guidelines, or subscription to secured, fixed, rated, listed Non-Convertible Debentures (NCDs) proposed to be issued by ABFL, said the World Bank's investment arm.

The INR ECB loan will be issued under Track III of RBI’s ECB guidelines.  The NCD issuance shall comply with regulator Sebi's guidelines for green bonds.

The project will be the first dedicated climate finance funding for ABFL. 

ABFL is a 100 per cent subsidiary of Aditya Birla Capital Limited (ABCL), which is the holding company for all financial services businesses of Aditya Birla Group (ABG).

In 2017, ABG undertook a restructuring exercise which involved the merger of group companies Aditya Birla Nuvo (parent of ABCL) and Grasim and subsequent demerger and listing of ABCL. The exercise has now been completed and ABCL got listed on September 1, 2017. Grasim holds 56 per cent in ABCL, promoters hold 17 per cent and balance is held by public shareholders.