World Bank arm invests $35 mn in PFS India for clean energy

The International Finance Corp (IFC), the private financing arm of the World Bank, on Wednesday said it has subscribed to $35 million worth of 10-year non-convertible debentures issued by PTC India Financial Services (PFS) to boost long-term financing for renewable energy projects in India.

"The investment will help generate an estimated 129 GWh (gigawatt hours) of clean energy over five years," IFC said in a statement here.

"In 2011, IFC had provided PFS a senior loan of $50 million to fund four renewable energy projects," it added.

"Infrastructure finance companies like PFS can fill a critical funding gap for renewable energy projects in India," said Vivek Pathak, IFC director for Asia-Pacific.

Renewable energy comprises 40 percent of the PFS portfolio.

In April, PFS became the first institution in India and the 26th globally to sign IFC's master cooperation agreement.

The IFC's master cooperation agreement was created in 2009 for financial institutions to collaborate more closely to help meet the shortfalls in private sector financing during the global financial crisis.

"Since then, signatories have co-invested more than $3 billion with IFC to support private sector development across the world," the World Bank arm said.