The IFC, a member of the World Bank Group, has invested $103 million in L&T Infrastructure Finance Company, a wholly-owned subsidiary of L&T Finance Holdings, by subscribing to the first market-approved Green Bond issued by L&T Infrastructure Finance.

This deal is in line with IFC’s strategy to support renewable energy infrastructure in India and also develop the capital markets, stated an IFC release. L&T Infrastructure Finance will utilize the funds to provide loans to solar power projects.

“We are delighted to partner with IFC, a pioneer in Indian and global green bond market and climate financing,” said Virender Pankaj, Chief Executive, L&T Infrastructure Finance. “This partnership with IFC will further diversify our funding profile and demonstrates the strength of our project appraisal and risk assessment capabilities for renewable energy lending,” added Mr. Pankaj.

This is the first Green Bond approved by SEBI, and may catalyze other similar programs. Mercom previously reported that India needs $2.5 trillion to reach its target of 40 percent electricity generation from renewables by 2030, after ratifying the Paris Climate Agreement.

Image Credit: By Victorgrigas (Own work) CC BY-SA 3.0, via Wikimedia Commons