IFC weighs $150 mn green loans to India’s Kerala infra agency

 IFC weighs $150 mn green loans to India’s Kerala infra agency

International Finance Corporation plans to provide up to $150 million to the Kerala Infrastructure Investment Fund Board (KIIFB), an agency tasked with setting up urban infrastructure in the southern Indian state.

KIIFB will utilize IFC’s green financing package to construct four new water supply projects and expand four hospitals that would be EDGE-certified, according to a disclosure.

EDGE, or Excellence in Design for Greater Efficiencies, is a green building certification system by IFC for emerging market economies.

IFC, the World Bank’s private-sector investment arm, said it would also offer advisory services to KIIFB to help it implement the construction of water and hospital expansion projects according to international environmental and social best practices.

Besides, it will help the state agency to certify the hospital projects as green buildings using its EDGE tool and help it develop a Green Financing Framework. The loan will also help Kerala to diversify its local currency funding sources.

KIIFB is an infrastructure funding agency wholly owned by the Kerala state. It is tasked with appraising, financing, and monitoring the construction of a portfolio of the state’s infrastructure projects.

IFC would provide the green financing package as rupee loans with a tenor of up to 10 years and a two-year grace period. IFC may mobilize around $50 million from parallel lenders.

IFC, one of the most active private equity and private debt investors in emerging economies such as India, said it will provide the long-term financing without any sovereign guarantee.

The Capital Quest