This line of credit is BoFA’s first locally denominated loan for commercial solar financing in India
New Delhi: Bank of America (BoFA) has extended a revolving credit facility of Rs 356.5 crore to Fourth Partner Energy. The firm will deploy these funds to grow its operational solar portfolio by close to 150 megawatt (MW) over the next 18 months, it said on Monday.
Revolving credit facility is a type of credit that does not have a fixed number of payments.
“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,” the Hyderabad-based company said in a press release.
This transaction expands upon Bank of America’s Environmental Business Initiative, which deploys capital to low-carbon, sustainable business activities.
“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,” 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 with Bank of America can open the door to long-term capital solutions for 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 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 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.