IFC to invest up to USD 125 mn in Hero Future Energies

International Finance Corp (IFC) will invest up to USD 125 million in Hero Future Energies, the renewable energy venture of the Hero Group.

"IFC together with IFC Global Infrastructure Fund will invest up to USD 125 million of equity and proceeds will be used to fund the construction of solar and wind power plants (the 'Project')," IFC said.

Hero Future Energies Pvt Ltd plans to commission capacity of more than 1 GW in next 12 months, it said.

"The proposed transaction is an equity investment in Hero Future Energies Pvt Ltd ...The company develops both solar (grid connected and rooftop) and wind power plants," IFC added.

EY was the investment banker on the transaction and advised Hero Future Energies to raise the funds from IFC.

Hero Future Energies had said earlier in the year that it has raised Rs 300 crore through issuance of rated and secured non-convertible debentures.

The funds would be used for expansion of the wind portfolio, the company had added.