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IFC to invest $125 million in Hero Future Energies

International Finance Corp. (IFC), the private sector investment arm of the World Bank, said on Tuesday it will invest $125 million (Rs.840 crore) in Hero Future Energies Ltd, the renewable energy arm of the Hero Group.Established in 2012, Hero Future Energies is present in nearly 10 states of India. The company is currently developing 150 megawatts (MW) in wind power assets and about 90MW in solar power assets.

Hero Future Energies is in talks with IFC and CDC Group Plc, a development finance institution owned by the UK government, to raise $150 million (about Rs.1,000 crore), Mint reported in April. Hero Future Energies aims to use the funds to expand its capacity to 2GW by 2020, the report said.In February, Hero Future Energies had raised Rs.300 crore through so-called certified climate bonds to expand its wind portfolio. Climate bonds or green bonds are an asset class linked to climate change solutions.

IFC has a committed portfolio of around $500 million (including equity and debt) in renewable energy projects in India.India’s renewable energy sector has attracted strong interest from foreign funds after the government sharpened its focus on clean energy.