Profectus Capital raises $25 mn from IFC

CHENNAI: Profectus Capital, a non-banking finance company focused on micro, small, and medium enterprises (MSMEs), raised $25 million (approximately Rs 205 crore) through issuance of non-convertible debentures (NCDs) to International Finance Corporation (IFC), a member of the World Bank Group.

This is IFC’s first investment to finance energy efficient machinery for MSMEs in India, a niche asset class in the financial services sector.

Since the proceeds will be used to fund green assets, the NCDs have been labelled as green bonds, and Profectus Capital has developed a green bond framework in line with International capital market association’s green bond principles.

IFC’s support will enable Profectus Capital to scale up EE equipment financing for MSMEs, which is key to India’s climate goals.