Tata Cleantech Capital Limited
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Tata Cleantech Capital Limited is a young NBFC – ND SI - Infrastructure Finance Company offering end-to-end solutions in the renewable energy and clean technology sector in India. TCCL commenced business in 2013. Tata Cleantech is part of the reputable Tata Group (Tata Capital is 80.5% shareholder) and International Finance Corporation (IFC is 19.5% shareholder).
What is our funding objective?
The funding raised will be used by Tata Cleantech Capital to further grow the renewable energy portfolio of the company. Focus sectors for TCCL are renewable energy, energy efficiency, water management and other green sectors in India.
Why do we fund this investment?
Green bonds are important for FMO to reach its ambitious long-term emission reduction targets. India has one of the largest renewable energy expansion programs globally and through Tata Cleantech Capital Ltd., FMO is able to support access to electricity throughout the country.
What is the Environmental and Social categorization rationale?
FMO has classified Tata Cleantech Capital Ltd. as E&S risk Category A. The portfolio consists mainly of large project finance investments in renewable energy sectors like wind and solar but also a small portion of power transmissions and small hydro plants. TCCL’s portfolio comprises of >60 projects. The predominant E&S risks and issues in solar projects are related to land procurement, long term restriction on vegetation growth, and enhancing existing water stress for the local communities. In wind projects, bird and/or bat collision, shadow flickering, and soil erosion along slopes for projects in hilly terrain are the most challenging E&S issues. TCCL carefully assesses whether the potential E&S risks are adequately managed when TCCL steps in a syndication, and proactively monitors the E&S risks. In addition, TCCL agrees on E&S conditions with the borrower.
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 10/18/2017
- Effective date
- 12/11/2018
- End date
- 9/9/2024
- Total FMO financing
- INR 1800.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A