The World Bank’s private financing arm IFC has invested $103 million in L&T Infrastructure Finance Co by subscribing to the first official Green Bonds in India, a joint statement by both parties said.
According to IANS, the statement said that this is in line with the International Finance Corporation’s (IFC) strategy to support renewable energy infrastructure in the country and also develop the capital markets.
The L&T Finance Holdings subsidiary L&T Infrastructure Finance “will use this money to give loans to solar power projects”.
Earlier this year, Sebi issued norms governing Green Bonds whose proceeds are used for projects or assets of renewable energy, clean transport, sustainable water or land management, climate change adaptation, energy efficiency such as green buildings or biodiversity conservation.
L&T Infrastructure Finance Chief Executive Virender Pankaj said that this partnership with IFC will further diversify our funding profile and demonstrates the strength of our project appraisal and risk assessment capabilities for renewable energy lending.
In collaboration with the Tata Group, IFC has created the first private sector “green” investment bank in India — Tata Cleantech Capital Limited — and given $170 million in wholesale investments to financial intermediaries that support the climate change programme in the country, the statement said.