 "Hero Group's renewable energy arm to raise $125 million from IFC")
Hero Future Energies, the renewable energy arm of automotive major Hero Group, is planning to raise around $125 million from International Finance Corporation (IFC). The proceeds will be used to fund construction of solar and wind plants across India. Hero Future Energies is also actively looking to expand its international business in various geographies.
The proposed investment by IFC and IFC Global Infrastructure Fund is in the form of equity in Hero Future Energies, said IFC.
It may be noted that Hero Future Energies had raised Rs 300 crore through debt (climate bonds) in February 2016.
Since its incorporation in 2012, Hero Future Energies has identified projects of two Gw and plans to have a total installed capacity of 1,000 Mw in the next 12 months. Both operational and under-construction projects are located in Tamil Nadu, Andhra Pradesh, Madhya Pradesh, Karnataka, Maharashtra, Rajasthan and Telangana.
Hero Future Energies has implemented 25 Mw of rooftop projects and it plans are to further expand its rooftop solar business.
Hero Future Energies is actively looking to expand its international business in various geographies. The proposed IFC investment is part of fresh equity infusion to support the expansion plans for the company.
"This investment will demonstrate the scale up of a pure play renewable energy company and help attract further private capital in this sector. The company can benefit from IFC's global knowledge in the renewable energy sector based on its experience with various clients in different countries", said IFC.
Hero Future Energies is owned by the Munjal family, promoters of the Hero Group.
