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
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 is providing a local currency revolving credit facility. The developer will deploy these funds to further grow its solar operational portfolio over the next 18 months. By providing the new 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 $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 Nations 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 percent 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, The Rise Fund, the global impact investing arm of TPG, invested in Fourth Partner Energy, and since then 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 catalyzes partnerships like this that scale positive environmental impact,” added former U.S. Secretary of State John Kerry, senior advisor to The Rise Fund and advisor to Fourth Partner Energy.
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 percent 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 percent 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.
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Bank of America (India)
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The Rise Fund (U.S.)
Fourth Partner Energy is India’s leading distributed solar energy firm focusing on building and financing solar projects across the private and public sectors for commercial, industrial and institutional entities.
It is a full-services Renewable Energy Services Company (RESCO) that offers end-to-end capabilities including Evaluation, Design, Planning, Procurement, Construction, Operation, Maintenance and Financing of critical solar infrastructure. Fourth Partner Energy is backed by TPG’s The Rise Fund which invested $70mn in the Hyderabad headquartered firm, in June 2018.
With an operational portfolio of 200 MW installed capacity across 23 states currently, the firm has now embarked on its journey to expand beyond distributed solar and into a variety of clean energy solutions, including storage and EV charging infrastructure.
The firm has a pan-India presence with its headquarters in Hyderabad and offices in 10 other cities including Pune, Gurgaon, Mumbai, Bengaluru, Kolkata, Chennai, Coimbatore, Jaipur, Ahmedabad, and Ranchi. It has executed projects for marquee clients like Hindustan Unilever, Coca-Cola, Pepsi, Walmart, Schneider, Skoda, Ferrero, Airtel, D-Mart and ICICI Bank. The company has helped reduce India’s annual dependency on coal by over 1.3 lakh tons, carbon emissions by 2.8 lakh tons – an equivalent of planting around 1.3 crore trees.
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services.
Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
The Rise Funds are the world’s largest global impact platform committed to achieving measurable, positive social and environmental outcomes alongside competitive financial returns. With more than $4 billion in assets under management across its platform, The Rise Funds work with growth-stage, high potential, mission-driven companies that have the power to change the world. Headquartered in San Francisco, The Rise Funds were founded in 2016 by TPG in partnership with Bono and Jeff Skoll and offer deep expertise in business solutions to help achieve the United Nations Sustainable Development Goals. As part of TPG, The Rise Funds offer investment resources, business-building skills, rigorous measurement and a global network to help portfolio companies accelerate growth and impact. With the ability to invest across a wide variety of sectors and countries at scale, The Rise Funds focus on opportunities in education, energy, food and agriculture, financial technology, healthcare and technology. For more information, visit https://therisefund.com.