Bank of America Extends Rs 356.5 cr LOC to Fourth Partner Energy

Distributed solar energy solutions provider Fourth Partner Energy has received a USD 50 million (Rs 356.5 crore) LOC from the Bank of America.

Hyderabad-based distributed solar energy solutions provider Fourth Partner Energy has received a USD 50 million (Rs 356.5 crore) line of credit (LOC) from the Bank of America.

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. The firm has announced that it will use the funds to grow its operational solar portfolio over the next 18 months.

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. The transaction expands upon Bank’s Environmental Business Initiative, which deploys capital to low-carbon, sustainable business activities.

Anne Finucane, vice chairman of Bank of America said that “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.”

With an operational portfolio of 200 MW installed capacity across 23 states, the startup has embarked on a journey to expand beyond distributed solar and into a variety of clean-energy solutions including storage and EV charging infrastructure.

The startup has a pan-India presence with headquarters in Hyderabad and 10 other offices in Bengaluru, Pune, Gurugram, Mumbai, Kolkata, Chennai, Coimbatore, Ahmedabad, Jaipur, and Ranchi. And has also begun international operations across Sri Lanka, Vietnam, Bangladesh, Nepal, and Myanmar.

“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.