New Delhi/Washington, D.C., October 9, 2009
—IFC, a member of the World Bank Group, is investing in India’s Himadri Chemicals and Industries Limited, a manufacturer of coal tar pitch, to help the firm build a more energy-efficient plant that will reduce its carbon emissions and expand product lines.
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.
Himadri will use the financing to expand its capacity to make coal tar pitch from 169,000 tons to 250,000 tons a year at its plant in the Indian state of West Bengal. 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 CEO. “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.”
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping play a prominent role in addressing the financial crisis. For more information, visit
www.ifc.org
.
About Himadri Chemicals and Industries Ltd
Established in 1990, Himadri is the largest manufacturer of high-quality coal tar pitch in India. The company also manufactures various types of coal tar products and derivatives. It has five facilities at four locations; three in West Bengal (one in Hooghly, two in Howrah), one in Visakhapatnam (Andhra Pradesh), and one in Korba (Chattisgargh). For more information, visit
www.himadri.com
.
