IFC to invest $125m to buy stake in India’s Hero Future Energies
International Finance Corporation (IFC) has announced that it will acquire a stake in India’s Hero Future Energies, the renewable energy arm of the Hero Group.
The investment is expected to enable the company to expand its renewable energy capacity, create jobs and facilitate private sector development in renewable energy.
Together with IFC Global Infrastructure Fund, the World Bank Group member will invest $125m to buy the stake in Hero Future Energies.
The stake purchase will allow the company to set up 1GW of greenfield solar and wind plants in the next 12 months across India.
Hero Future Energies chief executive officer Sunil Jain said: “This partnership will fuel our ambitions to tap into the incredible opportunity that lies in both domestic and overseas markets as well as new technologies namely storage, hybrid projects among others.
“This association is also a validation of our core strengths in timely project delivery, unwavering focus on health safety and environment standards, developmental capabilities, stringent asset quality standards and design and engineering skills.
“We will also aggressively focus on expanding our promising rooftop solar portfolio.”
With a presence in twelve states in India, Hero Future Energies has a capacity of over 360MW in solar, wind, and rooftop installations.
IFC started invested in India’s renewable energy sector in 2009 and its portfolio companies currently have set up over 3GW of different forms of renewable-power projects in the country.
IFC Global Infrastructure Fund Co-Head Darius Lilaoonwala said: “We look forward to supporting Hero Future Energies as it further consolidates its market position as a leading Indian wind and solar energy platform over the next few years.”