India Development News & Foreign Investment Opportunities

IFC sees opportunities for Indian projects in green bond funds

Success of solar and wind noted

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Success of solar and wind noted

 

Azure green project.

The International Finance Corporation (IFC) sees immense opportunities to finance Indian projects through its green bond fund launched in Singapore on 4 June 2019.

Twenty percent of IFC’s Real Economy Green Investment Opportunity (REGIO) Fund, in the range of US$500-$700 million, is to be allocated for green projects in Asia where India offers immense climate-friendly projects, IFC officials said.

The other 20% each will go to emerging economies region wise in Africa, Europe and Americas.

The REGIO Fund is expected to catalyse at least US$500 million to US$700 million in multilateral and private sector capital to support well-diversified climate-smart investments in developing countries around the world, largely through green bonds issued by non-financial, or real sector, companies.

IFC Director for East Asia & Pacific Department Vivek Pathak has highlighted the large-scale opportunities in India, especially the infrastructure development and urbanization.

Pathak highlighted green projects such as the success of ambitious solar and wind energy development, urban transportation, waste-to-energy conversion, water treatment and initiatives to build more and more green buildings.

IFC will lead with a US$100 million anchor investment in the fund, supported by HSBC with US$75 million.

The fund will have a total life of up to 15 years, including a seven-year investment period.

“This innovative fund will provide new opportunities for an important class of borrowers in green bond markets,” added IFC CEO Philippe Le Houerou.

“The capital raised by REGIO will make a vital contribution to the fight against climate change and further promote sustainability-oriented capital markets,” Le Houerou said in the fund announcement. fiinews.com

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