This is Bank of America’s first locally denominated loan for commercial and industrial solar financing in India as part of its global Environmental Business Initiative, which will help expand Fourth Partner’s distributed solar impact
December 16, 2019. By News Bureau
In an important step forward for India’s renewable energy growth story, Fourth Partner Energy has announced that Bank of America was extending to the firm, a local currency revolving credit facility. This $50mn line of credit is the Bank of America’s first locally denominated loan for commercial solar financing in India. Fourth Partner Energy will deploy these funds to further grow its operational solar portfolio by close to 150 MW over the next 18 months. By providing this revolving credit facility, Bank of America is helping to accelerate the transition to a cleaner and more sustainable power generation base in India.
This transaction expands upon Bank of America’s Environmental Business Initiative, which deploys capital to low-carbon, sustainable business activities. Since 2007, Bank of America has directed more than $145 billion to these efforts through lending, investing, capital raising and developing financial solutions for clients around the world.
“The need to mobilise and deploy capital to drive a clean energy future is critical to accelerating the global transition to low-carbon, sustainable energy sources and advancing many of the United Nation’s Sustainable Development Goals,” said Anne Finucane, vice chairman of Bank of America. “India plays a vital role in curbing global emissions and Fourth Partner Energy is driving that change. Through innovative financing products like this one we can help scale projects that are reducing greenhouse gas emissions, as well as support India’s role in solar energy development.”
To date, Fourth Partner Energy has executed distributed solar projects with a cumulative capacity of 200 MW across 23 states in India for over 150 corporate and government clients.
“India has achieved under 15% of its ambitious rooftop solar target of 40 GW by 2022, and there is a dire need to accelerate capacity installation. For us, this access to capital from Bank of America is important not just to strengthen and expand our businesses at efficient costs, but also because this relationship with Bank of America can open the door to long-term capital solutions for the sector. The skills, experience and resources of a global institution like Bank of America will be vital to expanding the sector” said Vivek Subramanian, co-founder Fourth Partner Energy.
In 2018 , TPG Capital, through its impact investment arm, The Rise Fund invested into Fourth Partner Energy, and since then TRF has worked closely with the company to help create new pathways to expansion. This transaction is an example of the unique benefits that scaled capital and global partners can bring to impact-driven growth businesses around the world.
“I joined The Rise Fund to make a difference empowering businesses that are making the world a better place, and Fourth Partner puts that theory into action for the environment. This new partnership with Bank of America will help Fourth Partner scale their growth. Rise catalyses partnerships like this that scale positive environmental impact,” added former Secretary of State John Kerry, Senior Advisor to The Rise Fund and Chairman of Fourth Partner Energy’s Advisory Board.
The revolving credit facility will help Fourth Partner explore new corporate partnerships and take on additional projects that contribute to India’s clean energy production goals.
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