IFC’s assistance consists of a $12.5 million loan, $12.5 million in foreign currency convertible bonds, and an IFC carbon delivery guarantee for the purchase of up to 460,000 certified emissions reductions from the company.
IFC’s funds have also helped complete another plant at the same location that manufactures carbon black, a key component in making tires and to build a new power plant that uses waste-heat recovery technology, eliminating the use of fuel oil and fossil fuel based energy. This will help cut its overall emissions and earn carbon credits that can be sold to companies in Western Europe and elsewhere.
“IFC was able to quickly execute our financing and provide us with flexible terms, despite today’s challenging credit environment,” said Anurag Choudhary, Himadri’s chief executive officer. “IFC’s expertise has also been crucial in helping us complete our first carbon credit deal.”
IFC backs carbon finance programs to support the trading mechanisms of the Kyoto Protocol, an international agreement that calls for reductions in greenhouse-gas emissions. The Himadri transaction represents IFC’s third investment involving carbon delivery guarantees, which provide clients with improved and transparent access to the international carbon credit market.
“Our investment in Himadri is allowing a company in one of India’s less developed regions to expand into more sophisticated products and create jobs while reducing its emissions,” said Somit Varma, IFC’s Global Head of Oil, Gas, Mining, and Chemicals. “It’s an example of our commitment to helping companies in the developing world realize the benefits of reducing emissions and improving efficiencies while continuing to grow.”
Himadri is an India-based manufacturer of coal tar pitch.
