IDFC PE Fund-promoted Green Infra to raise $59 mn from IFC

The money will be utilised to set up four wind projects with a capacity of 182 MW in Rajasthan and MP

IDFC PE Fund promoted Green Infra Limited plans to raise $59 million from the International Finance Corporation. The money will be utilised to set up four wind projects with a capacity of 182.4 MegaWatt (MW) in Rajasthan and Madhya Pradesh.

According to IFC project disclosure, the project involves a multi-level engagement and partnership with Green Infra Limited (GIL), an existing IFC client to develop, operate and construct renewable generation assets in India.

IFC is considering providing an overall envelope for debt funding in the amount of $59 million, to be used over the next one year for various projects that GIL is developing. The balance debt financing of upto $118 million is proposed to be arranged from other lenders by GIL or through IFC's syndicated loan product. Out of the total facility, 'A' loan of approximately $48 million and balance debt of $97 million are proposed for the four wind plants being developed under GICSL.

The first tranche of this financing is expected to be provided to the wholly owned subsidiary of GIL, Green Infra Corporate Solar Limited (GICSL). The money will support company's four wind power plants in Dangri, Nipanya, Parner and Rajgarh in India, with a total capacity of 182.4MW.

Dangri and Rajgarh plants are located near Pokhran city in the Jaisalmer district of Rajasthan. Parner and Nipanya plants are in Madhya Pradesh.

The plants are expected to be commissioned by March 31, 2015. The off-takers for the plants are going to be respective state distribution companies where the plants will be located.

The company has signed the Engineering, Procurement and Construction (EPC) and Operations and Maintenance (O&M) agreements for Dangri and Nipanya plants with Inox Wind Limited, Inox Wind Infrastructure Services Limited and Inox Renewables Limited. The Company has signed EPC agreement for Parner plant with Kenersys India Private Limited and Acorn Properties Private Limited and for Rajgarh plant with Wind World India Limited and Wind World Wind Resources Development Private Limited.

GIL's common equity is 100% owned by IDFC PE Fund II & Fund III. IDFC PE Fund II & Fund III is managed by IDFC Alternatives Limited, a subsidiary of Infrastructure Development Finance Corporation (IDFC). GIL also has quasi-equity financing from the CDC Group (formerly the Commonwealth Development Corporation), IDFC Fund III and the Piramal Group.

GIL is one of the largest independent renewable energy players in India with an installed capacity base of 450MW across five states including Maharashtra, Karnataka, Tamil Nadu, Rajasthan, and Gujarat.