IFC invests $125m in Indian renewable energy platform
The International Finance Corporation (IFC), the investment arm of the World Bank, will invest up to $125 million in Hero Future Energies (HFE), a renewable energy platform based in India.
HFE will use the new capital to fund construction of greenfield solar projects, both grid-connected and rooftop, and wind energy projects across India, according to a disclosure. The company plans to commission projects with a total capacity of over 1 gigawatt in the next year.
Founded in 2012, HFE is part of the Hero Group, an Indian conglomerate promoted by the Munjal family with more than $5 billion in assets. The Hero Group has focused on automotive manufacturing and servicing, along with automotive accessories, since its founding in the 1950s; in recent years it has sought to diversify into renewable energy, education and electronics.
IFC's investment is intended to promote the development of renewable energy in the private sector by demonstrating the availability of capital, and to provide employment during construction and operation of the planned projects. IFC will also assist the company with its knowledge and experience in the global renewable energy sector.
IFC has supported a number of renewable energy projects across Asia. Its investments include a $10 million commitment to Vietnamese hydropower company Gia Lai Electricity earlier this year and a $35 million commitment to Indian infrastructure finance firm PTC India Financial Services to help it finance wind, solar and other clean energy initiatives.
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