AZURE POWER ROOFTOP (GENCO) PRIVATE
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
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
Azure Power Rooftop (GenCo.) Pvt. Ltd. has seven Special Purpose Vehicles (SPVs). FMO finances each of the seven SPVs of Azure Power Rooftop (GenCo.), which is an intermediary holding company within the “Azure Group” of companies. Azure Group is a leading solar power company in India holding around 1.6GW of projects in its portfolio of which 163MW is on rooftops. Until now, all existing rooftop projects have been set-up by Azure Power India Pvt. Ltd. (“API”), an existing client of FMO. Going forward, they will be done via Azure Power Rooftop (GenCo.) Pvt. Ltd. and its various SPVs that have been set-up.
What is our funding objective?
The objective of FMO’s USD 30mln equivalent Local Currency Senior Loan (provided in Indian Rupees) is to fund the development and construction of new rooftop solar projects in India. This will help alleviate India’s dependence on fossil fuels and to support India’s goal of reaching 40 GW of installed rooftop solar capacity by the end 2022.
Why do we fund this investment?
FMO funded this project as there is barely any commercial long-term funding in both hard and local currency for Indian rooftop solar projects. By decreasing the reliance on imported fuel and increasing electricity capacity at lower average cost of generation, the project is expected to contribute to the economic growth of India.
What is the Environmental and Social categorization rationale?
E&S Category is B which reflects contextual risks around labour and health and safety issues in the Indian construction sector. It is also based on the nature of rooftop solar projects whereby solar panels are installed on existing office buildings and industrial complexes. The project will be managed according to the following Performance Standards (“PS”): PS 1 (Assessment and Management of Environmental and Social Risks and Impacts) PS 2 (Labor and Working Conditions) PS 3 (Resource Efficiency and Pollution Prevention) PS 4 (Community Health, Safety and Security) The project does not trigger IFC PS 5 as there will be no land acquisition or land clearance, and thereby no involuntary displacement. Given the siting of panels on existing industrial and commercial buildings, IFC PS6, PS7 and PS8 are also considered not to be triggered as impacts on Biodiversity, Indigenous Peoples and Cultural Heritage are very unlikely. Azure has a developing ESMS broadly in compliance with FMO requirements, which is currently being monitored by FMO and continually improved as part of the Environmental and Social Action Plan under the existing FMO facility (API).
- Region
- Asia
- Country
- India
- Sector
- Energy
- Publication date
- 3/15/2018
- Effective date
- 5/30/2018
- Total FMO financing
- USD 23.30 MLN
- Funding
- FMO NV
-
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) - B