Punjab Renewable Energy Systems Pvt Ltd. (PRESPL), one of the leading biomass supply-chain management companies in India, has received a guaranty backed loan of $10 million from US International Development Finance Corporation (DFC). Intellecap was the exclusive and the sole advisor for this transaction. India has an increasing demand for energy stemming from its growing population and expanding economy.
This increased energy demand is mostly being supplied by fossil fuels with only 15% of supplied energy coming from renewable energy sources. India must develop greener alternatives to help meet the growing demand and to reduce its greenhouse gas emissions.
This guaranty backed loan will be utilized towards the construction of 7 briquettes manufacturing plants and finance working capital needs of the company. The project is expected to create a positive development impact by increasing the production of biomass fuel, a fossil fuel alternative from 250,000 MT to over 1,950,000 MT within the next five years. In addition, the project will source its biomass materials from smallholder farmers and create jobs in states in India. PRESPL received part disbursement of the facility this month.
“DFC’s loan to Punjab Renewable Energy Systems helps fill a financing gap for distributed renewable energy that can combat the climate crisis through energy efficient solutions”, said DFC’s Chief Climate Officer, Jake Levine.
“With DFC support, PRESPL will contribute significantly to efforts to reduce carbon emissions in India by providing a more sustainable alternative to fossil fuels”, he added.
Lt Col Monish Ahuja (Retd), Chairman & Managing Director, PRESPL said, “On behalf of Team PRESPL and existing shareholders, I am delighted to welcome US DFC as a financing partner. This loan from DFC will help PRESPL expand our footprint and accelerate the growth of the business as a market leader in India. In partnership with USDFC, we aim to make a meaningful contribution to tackling climate change through the better utilization of biomass agri-waste for bioenergy”.
Ashim Ranu, Partner and Director, Investment Banking, Intellecap said, “PRESPL is contributing significantly in trying to meet the growing demand for biomass fuel from India’s rapidly expanding bio-energy industry, while providing a range of operation & maintenance, and other technical services, to the industry. We are delighted to help them expand their vision. These fund-raise transactions from USDFC further strengthen Intellecap’s support & credentials in the clean energy space”.