IFC invests $35m in Indian energy-focused NBFC

The investment - structured as 10-year non-convertible debentures - follows a $50 million loan that IFC provided to PFS in 2011 to fund four renewable energy projects. PFS will use the new capital to provide long-term financing for wind, solar and other clean energy initiatives, according to a statement. These initiatives are expected to generate 129 gigawatt-hours of energy over the next five years.

PFS is a Reserve Bank of India-designated infrastructure finance company that provides financial products to infrastructure companies, focusing on the entire energy sector. Other services provided by the non-banking financial company (NBFC) include loan syndication, advisory and underwriting.

PTC India, the promoter of PFS, is a leading provider of power trading services in India. It has previously attempted to enter the PE field itself, partnering with Ashmore Investment Management in 2010 to create an energy-related fund that ended two years later having made no investments.

The firm also set up a PE vehicle with an unnamed sovereign wealth fund in 2012 to target power projects in India and coal mines overseas.

IFC has supported other NBFCs in the past, seeing them as a way to channel money to small and medium-sized enterprises that have a hard time getting funds through other channels. Investments of this type include a $75 million commitment in 2014 to Fullerton India Credit, a firm owned by Temasek Holdings.

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• Topics
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