Tata Capital's green lending arm gets $30 million from Britain's CDC

Tata Capital

Britain's official development finance institution CDC Group on Thursday announced a USD 30 million credit facility to Tata Cleantech Capital - an arm of Tata Capital - under its green lending facility.

This is the first such green loan facility extended by the British impact investor.

The facility will enable Tata Cleantech to offer loans to businesses across the country that focus on e-mobility solutions as well as water and energy efficiency, thus help mitigate the effects of climate change, a Tata Capital statement said, adding this is CDC's first directed green lending facility.

Tata Cleantech is a joint venture between Tata Capital and the International Finance Corporation (IFC) and is the first of its kind private sector green investment bank with a focus on climate finance and advisory services.

In 2019, it secured USD 100 million line from the Green Climate Fund to develop a roof-top solar market.

India is the fourth-largest emitter of greenhouse gas emissions and is among the top 10 water consuming countries in the world.

The CDC loan aims to address the financing barriers by directing lending to specific sub-sectors, incentivising rapid deployment of capital at scale thus helping achieve the four of the sustainable development goals -- clean water and sanitation (goal 6), affordable and clean energy (7), responsible consumption and production (12) and climate action (13).

Tata Cleantech's managing director Manish Chourasia said they will help develop the nascent cleantech sectors -- e-mobility, energy and water efficiency through this directed green lending facility.

Srini Nagarajan, managing director and head of Asia at CDC, said this pioneering facility is the first of its kind for CDC and helps address some of the most important climate and resource challenges India is experiencing.

Tata Cleantech has financed over 220 projects and has contributed to the generate 7.7 gw of renewable energy. It has a loan portfolio value of USD 850 million.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel