Mumbai and Washington, DC, January 16, 2008 – Darby Overseas Investments, Ltd. ("Darby"), the private equity arm of Franklin Templeton Investments and a leading provider of private equity and mezzanine capital in emerging markets, announced that its Darby Asia Mezzanine Fund II ("DAMF II") invested 700 million Indian Rupees (approximately US$17.8 million) through an affiliate in Bangalore-based Bhoruka Power Corporation Ltd. ("BPCL"). Transaction details were not disclosed.
Bhoruka Power Corporation Limited (BPCL), a pioneer in the renewable energy sector, is engaged in the development and construction of small hydro-electric and wind energy power generation projects. BPCL has a portfolio of fourteen projects adding up to 91 MW of renewable energy capacity, primarily in Karnataka, with a planned addition of another 111 MW to be commissioned in the next 48 months.
Richard H. Frank, Darby's chief executive officer, commented: "BPCL represents an excellent investment opportunity to participate in the infrastructure sector. We are attracted to BPCL because of its strong position within India's rapidly expanding renewable energy sector and its strong execution capabilities."
Mr. S.N. Agarwal, Chairman of BPCL, said of the investment: "Mezzanine finance is an attractive source of long-term capital for us as we pursue our plans for growth. We are very pleased to take advantage of Darby's broad experience in mezzanine financing for companies such as ours."
Darby Overseas Investments, Ltd. was founded in 1994 by The Honorable Nicholas F. Brady, who served as U.S. Secretary of the Treasury between 1988 and 1993. In 2003 Darby became a fully owned subsidiary of Franklin Resources, Inc. [NYSE:BEN], 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 approximately US$643 billion in assets under management as of December 31, 2007.