IFC considers financing wind projects owned by Green Infra Wind

IFC is considering providing an overall debt funding of US$59 million for various renewable generation assets in India that Green Infra Limited (GIL) will develop, operate and construct.

The proposed IFC investment consists of an IFC ‘A’ loan of up to US$59 million. The balance debt financing of up to US$118 million is proposed to be arranged from other lenders by the sponsor or through the IFC syndicated loan product.

The first tranche of this financing is expected to be provided to the wholly owned subsidiary of GIL, Green Infra Corporate Solar Limited (GICSL). GICSL has been set up to develop four wind power plants (namely Dangri, Nipanya, Parner and Rajgarh) in India, with a total capacity of 182.4MW. The plants are expected to be commissioned by 31st March, 2015. The off-takers for the plants are going to be respective state distribution companies where the plants will be located.

Dangri and Rajgarh plants are located near Pokhran city in the Jaisalmer district of Rajasthan. Parner plant is located in the Ahmadnagar district of Maharashtra and Nipanya plant is located near Shamgarh town in the Mandsaur district of Madhya Pradesh.

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, which are 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.