IFC invests $35 mn in PTC Financial Services
International Finance Corporation (IFC), a member of the World Bank Group, has invested $35 million in the 10-year non-convertible debentures floated by PTC India Financial Services (PFA).
PFS, a non-banking finance company, will use the funds to boost long-term financing for renewable energy, particularly in wind and solar projects in India, IFC said in a statement.
At present PFS stock is trading at Rs 42 per share, 3.3% higher over previous close, on Bombay Stock Exchange.
The investment will help generate an estimated 1,29,000 megawatt of clean energy over five years. PFS is focused on financing projects in India across the energy value chain, and renewable energy comprises 40% of its portfolio.
Pawan Singh, Chief Financial Officer, PFS “the funds from the issue will augment our long-term funding resources and help diversify our borrowing profile.”
In 2011, IFC had provided PFS a senior loan of $50 million to fund four renewable energy projects.
In April, PFS became the first institution in India, and the twenty-sixth globally, to sign IFC’s master cooperation agreement.
This agreement has helped standardize steps that lenders take when co-financing projects with IFC. Signatories have co-invested more than $ three billion since its creation in 2009.
“With a strong sponsor like PTC, a power trading company, PFS has a natural advantage in reaching out to energy companies. This allows it to rapidly expand its green financing,” said Giri Jadeja, Regional Industry Head. Financial Institutions Group, IFC.
