IFC to invest USD 10m in Sunborne Energy's Indian solar projects

(ADPnews) - Oct 5, 2010 - International Finance Corporation (IFC) said yesterday it would invest USD 10 million (EUR 7.3m) in US Sunborne Energy LLP to partly fund the development of its first solar projects in India.

The proposed investment includes USD 4.1 million in equity and USD 5.9 million in quasi-equity instruments, IFC said in a statement. It is part of a USD-24.8-million raising, which Sunborne is carrying out to finance its first projects, and comprises USD 18.9 million in equity and USD 5.9 million as compulsory convertible debentures.

Sunborne is a developer and operator of solar power plants in India. Currently it is developing one 15 MW greenfield photovoltaic project in Gujarat and plans to develop other greenfield projects in Gujarat, Rajasthan and Andhra Pradesh states. The company expects to have operating solar power generation capacity of 700 MW by 2017.

The total costs of the projects are seen at USD 230 million, including USD 70 million project equity and USD 160 million long term debt, supposing that Sunborne can finance and develop one 15 MW photovoltaic (PV) project and one 50 MW concentrated solar power (CSP) project in the coming 12 months.

(USD 1 - EUR 0.726)

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