IFC plans to invest USD15 million in Clean Max Equity
International Finance Corporation (IFC) is planning to invest $15 million in Clean Max Equity. The fund infusion will support company's plan to set up solar projects of upto 250 MW capacity over the next three years.
The proposed transaction is a quasi-equity investment in Clean Max Enviro Energy Solutions (CMES). IFC will invest up to $15 million in compulsorily convertible debentures, said the World Bank's investment arm.
“An IFC investment would act as a stamp of approval for future fund raises. IFC is expected to mobilise co-investment from other investors,” said IFC.
IT is a renewable energy service company providing solar solutions for commercial and industrial customers in India through both on-site and off-site facilities. Clean Maxi plans on commissioning more than 250 MW of solar projects over the next three years.
The proceeds of the IFC investment will be used to fund the construction of the proposed solar projects. The proceeds of the IFC investment will be used to fund the construction of green field solar projects across India.
The company will setup new renewable energy based generation capacity to meet the increasing demand for power in the country and in the process will help reduce GHG emission intensity.
The project will help early stage renewable energy company to develop its business and thereby have a signalling effect on the market for other businesses, according to company's disclosure.