Fourth Partner Energy secures $50 mn revolving credit facility from Bank of America

V Rishi Kumar Hyderabad | Updated on December 16, 2019 Published on December 16, 2019

The government had set a target of 40,000 MW of rooftop capacity to be set up by 2022, but the tally now is only 4,400 MW, according to the consultancy Mercom.

To add about 250 MW this year

Fourth Partner Energy, a distributed solar company, has announced Bank of America has extended a $50 million (about Rs 356.5 crore) local currency revolving credit facility for taking up new projects.

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 business.

Fourth Partner Energy, which has thus far deployed over 200 MW of solar power, 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.

By providing the 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.

“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.

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.

“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 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.

“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.

Fourth Partner Energy’s current portfolio includes projects across a range of commercial and industrial clients, such as Coca Cola, Hindustan Unilever, Schneider, D Mart and Walmart.

The Hyderabad-based renewable energy firm has commenced international operations across Sri Lanka, Vietnam, Bangladesh, Nepal and Myanmar.

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Published on December 16, 2019
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