ICICI commits $25 million for $250 million green fund

Mumbai: ICICI Bank, India''s top private sector lender, has committed funds to the tune of $25 million, over the next six months, towards a $250-million green fund to be set up by a consortium of seven blue-chip companies.

Besides ICICI Bank, the consortium is likely to include Deutsche Bank, Yes Bank and Sidbi Venture Capital amongst others.

The Confederation of Indian Industry (CII) will be the key facilitator of the fund, which is in the process of being formed, a top CII official said.  

While $50 million will be raised in the form of equity, the remaining $200 million will be debt, CII-Sohrabji Godrej Global Business Centre''s senior director and head, S Raghupathy, said on the sidelines of a seminar in Mumbai.

"The fund will have a size of $250 million by 2010. ICICI Bank has already announced a $25-million investment in it, while talks are in progress with other parties," he said.

CII is understood have also approached investors such as NABARD, Exim Bank, Canara Bank, International Finance Corporation and Canara Bank amongst others for investment in the fund.

The fund will focus on clean technologies, energy efficiency, renewable energy and green building materials, Raghupathy said. "A consortium will be formed in the next few months, which will decide the fund manager." CII has also launched Green Investors Network, which comprises potential investors from India and abroad to facilitate investment in Indian green companies.