Bank of America Extends Credit Facilities to Fourth Partner Energy


Bank of America Extends Credit Facilities to Fourth Partner Energy

Bank of America is extending a first of its kind local currency revolving credit facilities of $50 million to Indian solar company, Fourth Partner Energy. The bank has announced its first locally denominated loan to support the commercial and industrial solar financing in India.

This is a measure taken by the lender as a part of Environment Business Initiative. This decision is initiated to accelerate the transformation of India to a cleaner and more sustainable power generation base.

It is critical to speed up the global transition to low-carbon and sustainable energy sources along with advancing many of the United Nation's Sustainable Development Goals. India plays a vital role in curbing global emissions and Fourth Partner Energy is driving towards that transition. Thus, utilizing these kind of innovative financing products, the projects that are reducing greenhouse gas emissions could be scaled up. Alongside, this would also support India's role in solar energy development.

On the other hand, Fourth Partner Energy has executed distributed solar projects with a capacity of 200 MW across 23 states in India for more than 150 corporate and government clients. Also, the collaboration of Fourth Partner Energy with a global institution like Bank of America will aid in the expansion of the sector across the country, states Vivek Subramanian, Co-Founder of Fourth Partner Energy.

This initiative is very crucial as India, China, the United States and the European Union account for about 60 percent of the world's carbon emissions from the combustion of fossil fuels. Moreover, with India aims to reduce its contribution relative to GDP by one third by 2030 under the Paris Agreement, there could be a wide scope for cleaner energy sector development.