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In an important step forward for India’s renewable energy growth story, Fourth Partner Energy, one of the country’s largest distributed solar companies, announced today 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.
China, India, the United States and the European Union account for nearly 60% of the world’s carbon emissions from combustion of fossil fuels. India’s commitment under the Paris Agreement is to reduce its contribution relative to GDP by one third by 2030; the target is also to ensure 40% of total installed capacity by 2030 is powered by renewables.
Fourth Partner Energy’s current portfolio includes projects across a range of commercial and industrial clients, such as Coca Cola, Hindustan Unilever, Schneider, and Walmart.
Fourth Partner Energy is looking to add 220-250 MW of capacity to its operational portfolio this year and is actively pursuing the Open Access Group Captive model. The firm has commenced international operations across Sri Lanka, Vietnam, Bangladesh, Nepal and Myanmar.