The proposed transaction is a quasi-equity investment in Clean Max Enviro Energy Solutions (CMES). IFC will invest up to $15 million in compulsorily convertible debentures, said the World Bank’s investment arm.
“An IFC investment would act as a stamp of approval for future fund raises. IFC is expected to mobilise co-investment from other investors,” said IFC.
The proceeds of the IFC investment will be used to fund the construction of the proposed solar projects. The proceeds of the IFC investment will be used to fund the construction of greenfield solar projects across India.
The company will set up new renewable energy based generation capacity to meet the increasing demand for power in the country and in the process will help reduce GHG emission intensity.
The project will help early stage renewable energy company to develop its business and thereby have a signalling effect on the market for other businesses, according to company’s disclosure.
Source: Business-Standard