International Finance Corporation, the private investment arm of World Bank, is looking to invest up to $100 million in L&T Infrastructure Finance Ltd’s proposed green bonds.
Proceeds from green bonds are used for allocation for renewable energy and energy efficiency projects. Moody’s Investors Service projected that companies globally are likely to raise a record $206 billion by way of green bonds in 2017, more than double of $93.4 billion mopped up last year.
IFC said that it would subscribe to non-convertible debentures of the non-banking finance company for the purpose of financing solar energy projects in India.
“The proposed investment is consistent with the World Bank Group’s India Country Partnership Strategy,” it said in a disclosure. The solar energy projects helps improve access to electricity and reduce greenhouse gas emissions through energy efficiency and renewable energy.
Set up in 2006, L&T Infra Finance has built a niche in financing renewable energy.