 "PTC raises $60 mn from two global bodies")
International Finance Corporation (IFC), a member of the World Bank Group, has invested $35 million in 10-year non-convertible debentures floated by PFS. Dutch development bank FMO has invested $25 billion.
PFS, a non-banking finance company, would use the funds to boost long-term financing for renewable energy, particularly in wind and solar projects in India, IFC said.
PFS closed 1.8 per cent higher at Rs 42 a share on the BSE on Wednesday.
Pawan Singh, chief financial Officer of PFS, told Business Standard the company was in advanced stage of talks to raise more funds from two European development finance institutions.
The funds (from IFC and FMO) are hedged against foreign exchange risks and the cost of funds to PTC would be over nine per cent. “The funds would augment long-term resources and help diversify our borrowing profile,” he said.
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In 2011, IFC had provided PFS a senior loan of $50 million to fund four renewable energy projects.
PFS is focused on financing projects in India across the energy value chain, and renewable energy comprises 40 per cent of its portfolio. In April, PFS inked a master cooperation agreement with IFC, which helped standardise steps that lenders take when co-financing projects with IFC. Signatories have co-invested more than $3 billion since its creation in 2009.
“With a strong sponsor like PTC, a power trading company, PFS has a natural advantage in reaching out to energy companies. This allows it to rapidly expand its green financing,” said Giri Jadeja, regional industry head-financial institutions group, IFC.