Aditya Birla Finance receives Rs. 1,000 crore loan from IFC

IFC, a member of the World Bank Group, has extended a 7-year long-term loan of Rs. 1,000 crore to Aditya Birla Finance Limited. (ABFL), the NBFC arm of Aditya Birla Capital Limited (ABC). ABFL is a diversified non-banking finance company (NBFC)

ABFL will use the proceeds to finance renewable energy projects. India has set a target of 175 GW of renewable energy capacity by 2022. This IFC green loan, sanctioned in March 2018, is an Indian rupee loan under Track III of the Reserve Bank of India’s guidelines for external commercial borrowings. With this funding, IFC will also help ABFL develop its renewable energy program by providing longer-tenor financing, knowledge sharing and setting of standards.

India’s power sector is one of the largest in the world, but the country’s per capita consumption of electricity is less than a-fourth of the global average. The government wants to provide round the clock electricity across the country by 2019, while minimizing the impact on the environment. For that, it plans to increase the renewable energy capacity to 175 GW, comprising solar, wind, biomass and small hydro projects by 2022.   

On Wednesday, the shares of Aditya Birla Capital closed at Rs.  110.45 per share on the BSE down by 0.50 per cent.