Vector Green Energy, a portfolio company of India Infrastructure Fund II managed by IDFC Alternatives, has announced it has closed financing of two solar farms in Telangana.

This is a part of its acquisition of projects aggregating 223 MW from First Solar.

Along with the acquisition, the special purpose vehicle (SPVs) have also raised long term non-recourse financing from IndusInd Bank and L&T Infra Debt Fund to refinance the existing project lenders.

IIB and L&T Finance have together sanctioned more than Rs 1000 crore to Vector Green towards the acquisition of First Solar portfolio.

Vector Green is currently progressing on acquiring another 240 MW of operating capacity from different owners. The binding agreements for these capacities have already been executed and IIF II expects to complete the respective acquisitions by March 2018.

Once completed, Vector Green’s operating base would expand to 350 MW. The capacities being aggregated are being managed by a 15 member central management team at Vector Green’s Mumbai office.

Aditya Aggarwal, Partner, IDFC Alternatives, leading the renewable initiative in a statement said, "We are delighted at the prospect of adding the First Solar set of projects and diversifying our lender base. Consistent with our stated strategy of aggregating operating renewable assets, we are continuing to target high quality cash generating and operating renewable assets, with the aim of expanding to 500-600 MW of operating capacity by the end of 2018. In line with this expansion IIF II will ramp-up the central management team strength of Vector Green to 25-30 people this year.”

IDFC Alternatives is one of India's largest alternatives fund manager with AUM of $ 3.4 billion. It is a wholly owned subsidiary of IDFC Limited.

India Infrastructure Fund II has established Vector Green Energy Private Limited as the operating cum holding company for its control investments in the renewable energy space.