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India: Tata Cleantech Sustainable Infrastructure On-Lending Facility

SUMMARY

STATUS
Approved
ECONOMY
India
SECTOR
Financial Institution
E&S CATEGORY
FI
PROJECT NUMBER
000298

FINANCING

PROJECT TYPE
Nonsovereign
APPROVED FUNDING
USD75 million
FINANCING TYPE
Stand-alone

TIMELINE

CONCEPT REVIEW
May 24, 2019
APPRAISAL REVIEW/FINAL REVIEW
August 2019
FINANCING APPROVAL
September 26, 2019

OBJECTIVE

To mobilize private capital for investments in subprojects that will support: (a) increased supply of renewable energy generation, (b) expanded transmission and distribution network, (c) deployment of energy storage systems, (d) enhanced water infrastructure and (e) improve industrial energy efficiency in India.

DESCRIPTION

The proposed facility will be used by Tata Cleantech Capital Limited (TCCL) to finance renewable energy, power transmission & distribution, Energy Storage, Industrial Energy Efficiency, and water infrastructure construction projects in India.

TCCL, a non-bank financial company classified as Infrastructure Finance Company by Reserve Bank of India, is one of the leading financiers of renewable energy in India. TCCL is a joint venture between Tata Capital Limited and the International Finance Corporation. Tata Capital Limited is majority-owned by Tata Sons Private Limited, the leading Indian conglomerate. The International Finance Corporation is a member of the World Bank Group.

TCCL has contributed to sustainable development by participating in the funding of more than 5.2 GW of Renewable Energy Projects. It was the first private sector firm to partner with the Green Climate Fund to develop rooftop solar in India. Since inception, TCCL spread across various sectors in Cleantech, both in utility scale and small-scale segments, has funded over 150 projects and has established a very high-quality USD 700 million loan book.

The proposed financing supports AIIB's Sustainable Energy for Asia Strategy and Strategy on Mobilizing Private Capital for Infrastructure. The proposal is aligned with the Government of India's plans to reduce India's carbon intensity by 30%35% of 2005 levels under the Paris Agreement.

PROJECT FINANCING

For more information about project financing, please review the project summary.

ENVIRONMENTAL AND SOCIAL INFORMATION

AIIB’s Environmental and Social Policy (ESP) is applicable to this on-lending facility. The project has been placed in Category FI, because the financing structure involves the provision of funds through a Financial Intermediary, whereby AIIB delegates to TCCL the decision-making on the use of AIIB’s funds for subprojects that meet the conditions to be agreed with the Client and applied through a Social and Environmental Management System (SEMS).

Please review the project summary for additional information.

PROJECT TEAM LEADER

Neeraj Jain

Investment Officer

neeraj.jain@aiib.org

 

BORROWER

Behzad Bhesaniad

Chief Finance Officer
Tata Cleantech Capital Limited

Behzad.Bhesania@tatacapital.com

 

IMPLEMENTATION AGENCY

N/A

PROJECT DOCUMENTS

CLIENT/COFINANCING PARTNER DOCUMENTS

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