New Delhi: Darby Overseas Investments Ltd, the private equity arm of Franklin Templeton Investments and a provider of mezzanine capital in emerging markets, announced that its Darby Asia Mezzanine Fund II has invested Rs700 million ($17.8 million) through an affiliate in Bangalore-based Bhoruka Power Corporation Ltd (“BPCL”).
BPCL, a player in the renewable energy sector, develops and constructs small hydro-electric and wind energy power generation projects.
BPCL has a portfolio of 14 projects adding up to 91mw of renewable energy capacity, primarily in Karnataka. It plans to add another 111mw in the next 48 months.
Richard H. Frank, Darby’s CEO, commented: “We are attracted to BPCL because of its strong position within India’s rapidly expanding renewable energy sector and its strong execution capabilities.”
SN Agarwal, chairman, BPCL, said of the investment: “Mezzanine finance is an attractive source of long-term capital for us as we pursue our plans for growth.”
Darby Overseas Investments was founded in 1994 by Nicholas F. Brady, who served as US Secretary of the Treasury between 1988 and 1993. In 2003, Darby became a fully-owned subsidiary of Franklin Resources, a global investment management organization operating as Franklin Templeton Investments.
Franklin Templeton Institutional, a unit of Franklin Templeton Investments, provides global and domestic investment management solutions managed by the Franklin Global Advisers, Templeton, Franklin Templeton Fixed Income, Franklin Templeton Real Estate Advisors, Darby and Mutual Series investment management teams.
The San Mateo, California-based company has 60 years of investment experience and $643 billion in assets under management as of 31 December 2007.