Mumbai, July 6 (IANS): The World Bank's private financing arm IFC has invested Rs 667 crore ($103 million) in L&T Infrastructure Finance Co by subscribing to the first official Green Bonds in India, a joint statement by both parties said on Thursday

"This is in line with the International Finance Corporation's (IFC) strategy to support renewable energy infrastructure in the country and also develop the capital markets," the statement said. 

The L&T Finance Holdings subsidiary L&T Infrastructure Finance "will use this money to give loans to solar power projects". 

"The issue by L&T Infrastructure Finance to IFC qualifies as the first Green Bond approved by Sebi (Securities and Exchange Board of India)."

Earlier this year, Sebi issued norms governing Green Bonds whose proceeds are used for projects or assets of renewable energy, clean transport, sustainable water or land management, climate change adaptation, energy efficiency such as green buildings or biodiversity conservation.

"L&T Infrastructure Finance is a leading financier to the renewable energy sector and this green bond subscription will serve as a catalyst for corporates to issue green bonds," IFC Country Head in India Jun Zhang said in the statement. 

"This partnership with IFC will further diversify our funding profile and demonstrates the strength of our project appraisal and risk assessment capabilities for renewable energy lending," said L&T Infrastructure Finance Chief Executive Virender Pankaj. 

In collaboration with the Tata Group, IFC has created the first private sector "green" investment bank in India -- Tata Cleantech Capital Limited -- and given $170 million in wholesale investments to financial intermediaries that support the climate change programme in the country, the statement said. 

Besides, IFC has invested about $1.2 billion in climate-friendly projects through direct investments in India in the last five years, it added.