Clean Solar Power (CSP), a step-down subsidiary of Hero Future Energies Global Ltd. (HFE), is set to receive a debt financing of up to $43.3 million from International Financial Corporation (IFC), the financial arm of the World Bank.

Clean Solar Power has proposed the development, construction, operation, and maintenance of a 250 MW greenfield solar project located in Rajasthan’s Bhadla. The estimated cost of the project is $200 million.

Along with the debt financing of up to $43.3 million, the proposed IFC investment (pending approval) involves the mobilization of senior loans. The solar project is slated to sell the generated power to the Solar Energy Corporation of India Limited (SECI) under a 25-year power purchase agreement (PPA), according to the disclosure of the proposed project by IFC.

This is not the first time IFC is investing in the Hero group. In 2016, IFC and GIF had invested $62.5 million in the company.

Previously, IFC also invested $125 million in Hero Future Energies. Additionally, IFC Global Infrastructure Fund (a private equity fund managed by IFC Asset Management Company) provided financial support, enabling the company to set up 1 GW of solar and wind projects across India, the IFC had stated.

IFC will provide a fixed interest rate local currency loan with a long term maturity of up to 20 years, which will improve the project viability against any adverse interest rate fluctuations. Additionally, IFC’s involvement will facilitate the participation of other lenders to finance the project.

The project has been classified as a category B project according to IFC’s Policy on Environmental and Social Sustainability(E&S).

Back in December 2017, Hero Future Energies won 300 MW of the 500 MW solar auction conducted in Rajasthan, at a winning bid of ₹2.47 (~$0.0380)/kWh. This was followed by Softbank Group which won the remaining 200 MW at the second lowest bid of ₹2.48 (~$0.0382)/kWh.

Hero Future Energies has a portfolio of 572 MW in operations, with another 590 MW in the pipeline as of Q1,2019 according to Mercom India Solar Project Tracker.