IFC, a member of the World Bank Group, and PTC India Financial Services Ltd. (PFS) will partner to provide much-needed infrastructure financing for renewable energy projects in India. These investments will, in turn, help boost growth and create jobs.
PFS becomes the first institution in India, and the twenty-sixth globally, to sign IFC’s master cooperation agreement. This collaboration will help standardize steps that lenders take when co-financing projects with IFC. The ultimate aim is to make local currency financing available in shorter time-frames and reduce financing costs for borrowers, enabling them to operationalize projects faster.
“This partnership will deepen our cooperation with IFC and other development financiers in areas such as renewable energy,” said R.M. Malla, Managing Director and CEO, PFS. “In addition to reducing costs, our clients will also have access to global best practices including IFC’s environmental and social guidelines.”
IFC’s master cooperation agreement was created in 2009 in response to calls for finance institutions to collaborate more closely to help meet shortfalls in private sector financing during the global financial crisis.
“IFC and PFS can work more efficiently with Indian companies to spur private sector development by providing long-term risk capital where it is needed most,” said Hyun-Chan Cho, IFC’s Head of Infrastructure and Natural Resources – Asia Pacific. “With this partnership, we can respond more swiftly to private sector financing needs, and boost job creation.”
Since the master cooperation agreement was created, signatories have co-invested more than $3 billion with IFC to support private sector development across the world. This partnership will spur private sector investments in India’s renewable energy sector.