Infrastructure debt fund IL&FS Mutual Fund has committed an investment of ₹1.25 billion (~$13.63 million) in Hero Solar Energy, part of renewable energy developer Hero Future Energies, to refinance its debt and support the expansion of its renewable projects.

Hero Solar Energy will issue secured debentures to IL&FS to facilitate the deployment of long-term capital.

IL&FS said it has committed nearly ₹15 billion (~$163.64 million) to renewable energy investments across India. This commitment has generated average annual returns of over 9.5%.

IL&FS Mutual Fund’s sister company, IL&FS Energy Development Company, which sets up energy projects with a focus on renewable energy, has a portfolio of 1,000 MW of solar parks and 840 km of operational 400 kV transmission lines.

IL&FS Energy is also working with the Rajasthan government on developing the Bhadla Solar Park, providing substations, grid connectivity, and arrangements for long-term power evacuation access.

Its portfolio includes 862 MW of operational wind capacity across seven states.

Last October, Hero Future Energies secured a loan of ₹19.8 billion (~$221 million) from public-sector banks State Bank of India and Canara Bank to develop a 120 MW wind-solar hybrid project with energy storage systems.

In September, Hero secured ₹10.24 billion (~$115.43 million) in funding from BI to finance a 60 MW wind-solar hybrid project in Andhra Pradesh. The project, which combines solar, wind, and storage and is contracted with the Solar Energy Corporation of India, is being built in the Kurnool district.

Indian lenders and investors are increasingly supporting renewable energy companies expand their operations.

Recently, Bank of Baroda raised ₹100 billion (~$1.1 billion) through green infrastructure bonds to support long-term funding for renewable energy and sustainable infrastructure projects.

Last month, Hyderabad-based Bondada Engineering received approval for credit facilities of ₹5 billion (~$55.01 million) from Canara Bank to fund the debt portion of its 200 MW/400 MWh standalone battery energy storage system project with Tamil Nadu Green Energy Corporation.