IFC pushes Rs.667 cr in L&T's green infra

In a recent development, the International Finance Corporation (IFC), a member of the World Bank Group, has invested Rs.667 crore ($103 million) in L&T Infrastructure Finance Company, said official sources, claiming that this is in line with IFC‘s strategy of supporting renewable energy infrastructure in the country and also develop the capital markets. L&T Infrastructure Finance Company Limited, a wholly-owned subsidiary of L&T Finance Holdings Ltd, will use this money in green energy projects. The company has been increasing its focus on renewable energy, which has come to comprise 37% of its Rs.22,774-crore, which is nearly $3.51 billion portfolio. IFC, the private sector financing arm of the World Bank Group, helps the private sector address development challenges through investments, innovative financing, and advisory and it had earlier invested $50 million in Yes Bank and $75 million in PNB Housing Finance through instruments that would qualify as green bonds. The partnership with IFC will further diversify funding profile and demonstrates the strength of project appraisal and risk assessment capabilities for renewable energy lending, said chief executive officer, L&T Infrastructure Finance, Virender Pankaj.