HFE Equity

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The proposed transaction is an equity investment in Hero Future Energies Private Limited (“HFE” or the “Company”). The Company develops both solar (grid connected and rooftop) and wind power plants. It plans to commission capacity of more than 1GW in next 12 months. IFC together with IFC Global Infrastructure Fund will invest up to US$125 million of equity and proceeds will be used to fund the construction of solar and wind power plants (the “Project”).Update related to additional investment under the COVID-19 response facility:IFC has committed INR 3,750 million to Hero Future Energies Private Limited on June 11, 2020. The investment is in the form of senior secured NCDs issued to IFC by HFE's wholly owned subsidiaries, Hero Solar Energy Private Limited (HSE) and Hero Future Energies Private Limited (HWE) for the purposes of refinancing their existing debt (“New Project”). In the current pandemic the Company faces an increased risk of payment delays from power distribution companies and tougher refinancing of existing debt due to lockdown, risk aversion and liquidity constraints in the domestic financial markets.