USD 1 Billion Fund for Renewable Energy Projects
Scott Nathan, CEO of the US International Development Finance Corporation (USIDFC) pointed to working along with India’s National Infrastructure Investment Fund (NIIF) to establish a USD 1 billion fund dedicated to financing green projects. This collaboration aims to leverage USD 500 million each from the USIDFC and NIIF, with additional contributions anticipated from other investors. The fund will be used for investments into renewable energy projects across India, supporting the nation’s transition towards sustainable and eco-friendly solutions.
Scott Nathan’s visit coincided with the inauguration of First Solar’s 3.5 GW solar module plant; a project backed by a USD 500 million commitment from USIDFC in December 2021. Notably, USIDFC had also pledged USD 425 million for Tata Power’s upcoming solar module plant in Tamil Nadu.
NIIF, a collaborative investment platform, manages over USD 4.9 billion of equity capital commitments across various funds. Anchored by the Government of India, the focus is on diverse asset classes and sectors, generating attractive risk-adjusted returns. Nathan further highlighted the role of USIDFC in providing loan guarantees to facilitate lending in local currency. This approach aims to de-risk for financial institutions, thereby fostering a conducive environment for renewable energy projects. Emphasising the global reach of USIDFC, Nathan clarified that the organisation does not require a US connection for lending and is open to supporting Indian projects. As an example, he cited USIDFC’s USD 9.9 million funding to EyeQ Vision for its expansion into Nigeria.
With an exposure of USD 4 billion in India, constituting 10 per cent of its global exposure, USIDFC’s collaboration with NIIF underscores a shared commitment to advancing green initiatives, contributing to India’s sustainable development goals.
