Bengaluru, NFAPost: International Finance Corporation (IFC), a member of the World Bank Group, has bought 10% stake in Continuum Green Energy Ltd.’s first Green Bond in Singapore to help India create a sustainable and clean energy infrastructure. This will enable the country to reduce its greenhouse gas emissions while paving the way for a sustainable economic recovery from Covid-19.
IFC Partners with Continuum to Boost Sustainable Energy Project
The IFC offering has raised US$561 million to help refinance existing debt while providing the stimulus to sustain a $4 billion global infrastructure of Continuum, which is majority-owned and managed by Morgan Stanley Infrastructure Partners.
Continuum has been a major provider of sustainable (renewable) energy to corporates in the country’s commercial and industrial sectors with nearly two gigawatts of wind and solar projects spanning across the subcontinent.
IFC has continued its partnership with Continuum ever since 2014 when it first financed the company’s wind farm project in Madhya Pradesh.
“We are delighted to continue our long-standing partnership with IFC through our first green bond,” said Arvind Bansal, Chief Executive Officer of Continuum. “As a pioneer in the green bond market, IFC’s wealth of knowledge and successful track record as an issuer, investor and adviser will continue to help stand our company on solid ground and support India in a resilient recovery from the pandemic. This offering enables us to further diversify our sources of funding, and we look forward to strengthening our partnership with global investors as we continue to build and grow our business.”
Raja Parthasarathy, Managing Director at Morgan Stanley Infrastructure Partners, added: “From the very beginning, Continuum has chosen to focus on operational excellence and profitability over scale and simultaneously strived to set the industry standard for its ESG practices. IFC’s anchor support for the company’s inaugural green bond issue validates the company’s strategy, and we are delighted to have yet another opportunity to deepen our institutional partnership.”
Sustainable Energy and Economic Recovery
Sustainable and clean energy will play a significant role in a fast-developing nation like India as it gears up to meet the rising demand for renewable energy from corporate buyers over the next decade.
With increasing fiscal deficits among the governments across the world due to the pandemic, it is now imperative to seek private sector participation to achieve a sustainable economic recovery.
IFC Role in Climate-Smart Projects
IFC has played a major role in promoting and financing climate-smart projects for developing countries across the world. It has made a net investment of $22.2 billion in long-term infrastructure funding since 2005 while mobilising an additional $15.7bn from other key investors for these projects.
IFC has been the backbone of India’s renewable energy project development since 1989 with a net investment of $2.3bn for the power sector comprising 60 projects of which 35 are renewable energy projects.
“We are excited to partner with Continuum for its first green bond”, said Isabel Chatterton, Regional Industry Director for Natural Resources and Infrastructure, Asia Pacific at IFC.
“IFC’s investment will help Continuum maintain sustainable power generation across India and position it to deliver projects under development as the country emerges from the pandemic. It will also help support India in its ambitions to reduce greenhouse gas emissions, at a time when private capital is most needed to fund infrastructure projects and support a green, resilient economic recovery.”