Distributed solar firm Fourth Partner Energy has secured Rs 356.50 crore (US$50 million) revolving credit from Bank of America as it looks to add 220-250 MW of capacity this year.
This is Bank of America’s first locally denominated loan for commercial and industrial solar financing in India under its Environmental Business Initiative. Since 2007, Bank of America has directed $145 billion to support low-carbon, sustainable business activities 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 Bank of America vice chairman Anne Finucane.
“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.”
Currently, Fourth Partner Energy has a cumulative capacity of 200 MW across 23 states in India for over 150 corporate and government clients, and is actively pursuing the open-access group captive model.
“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 Fourth Partner Energy co-founder Vivek Subramanian.
In 2018 American investor TPG (Texas Pacific Group), through its global impact arm The Rise Fund, invested $70 million in Fourth Partner Energy, and since then has worked closely with the company to help create new pathways to expansion.
“This new partnership with Bank of America will help Fourth Partner scale their growth. Rise catalyzes partnerships like this that scale positive environmental impact,” added former Secretary of State John Kerry, Senior Advisor to The Rise Fund and Advisor to Fourth Partner Energy.
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. It has also commenced operations in Sri Lanka, Vietnam, Bangladesh, Nepal and Myanmar.
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