Following our recent look into the Bank of America’s sustainability achievements, Business Chief takes a look at its US$50mn investment into India’s clean energy.
As part of its Global Environment Business Initiative, Bank of America has committed to investing a US$50mn locally denominated loan in commercial and industrial solar financing in India, which will help expand Fourth Partner Energy’s distributed solar impact.
How will Fourth Partner Energy use the investment?
Fourth Partner Energy is one of India’s largest distributed solar companies. The company will use the investment to further grow its solar operations in the region over the next 18 months, to drive India’s renewable energy growth and transition towards a more sustainable future.
To date the Bank of America has directed US$145bn since 2007 to sustainable efforts, to lower carbon emissions and drive sustainable business activities globally.
“The need to mobilise and deploy capital to drive a clean energy future is critical to accelerating the global transition to a 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.”
Fourth Partner Energy achievements:
To date the company has distributed solar projects with a capacity of 200MW across 23 states in India for over 150 corporate and government clients. The company has further ambitions to achieve 40GW by 2022.
“There is a dire need to accelerate capacity installation,” says Vivek Subramanian, co-founder, Fourth Partner Energy. “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.”
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