Independent power producer Hero Future Energies (HFE) has raised $125 million in private equity from Washington-based IFC, part of the World Bank, for an undisclosed stake.

The company is also in talks with IFC to raise debt, HFE Chairman and Managing Director Rahul Munjal told BusinessLine on Thursday.

HFE, part of the Hero Group, is one of the nation’s larger renewable energy producers. By June, the company will have a portfolio of 1 GW of wind and solar plants, said Sunil Jain, CEO and Executive Director.

Backed by the fresh funds, HFE is looking to participate in a number of bids for wind and solar projects. Among the key ones is a Central government tender for 1,000 MW of wind projects — the first of its kind in the country.

HFE is aiming at bagging 250 MW of wind projects through the tender, Jain said, adding that it has enough land for 150 MW in Karnataka. “It is beautiful business to be in,” he said at a press conference held here to announce the IFC funding. “You never have to worry about the market.”

Later, speaking to BusinessLine , he said that HFE, though in investment mode, is also making profits. IFC’s coming on board would raise the ratings of the company further,, enabling it to get better rates for debt, he added.

“Last month, we closed a bond issue through which we raised ₹300 crore,” he said.

Asked about the rate of interest, he said it was around 10 per cent. Now there is scope for further reduction, he said, observing that there is a possibility of raising fresh debt to replace older, higher cost loans.

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