Fourth Partner Energy has raised $16 million (₹126 crore) in mezzanine funding from a consortium of European impact investment funds, led by Symbiotics.
This is the second round of funding announced by the firm this fiscal, after responsAbility Investments A.G. pumped in $15 million in June.
Symbiotics, a leading market-access platform for impact investing, has arranged for the issuance of this bond in partnership with thre Netherland’s sustainable banking majors Triodos Bank and ASN Bank. This bond marks the consortium’s foray into India’s commercial solar sector.
Fourth Partner will utilise these funds for construction of around 150 MW worth of new solar assets.
Pradhyum Reddy, Head, Corporate Finance at Fourth Partner Energy, said, “This line of credit from marquee impact investors like Symbiotics, Triodos and ASN is testament to the role of commercial and industrial customers driving the transition to clean energy.”
“We have a very healthy order-book, and these two rounds of funding in quick succession, in what has otherwise been a challenging year, will allow us to execute these projects and adhere to our client commitments. We will be utilising these funds for expanding our distributed solar footprint,” he said.
Fourth Partner Energy has an operational portfolio of 400 MW of solar assets currently and is looking to add close to 350 MW capacity this fiscal. The company is also constructing solar parks across Uttar Pradesh, Maharashtra and Tamil Nadu as part of its Open Access portfolio.
“The issuance of this bond is fully aligned to Symbiotics’ mission to foster sustainable development and wider adoption of green energy in emerging and frontier economies. We are excited to nurture and selectively grow this segment even further in India with the disbursal of this local currency loan to Fourth Partner Energy,” Daniel Schriber, Head of Investments at Symbiotics, said.
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Rosemarijn van der Meij, Fund Manager, ASN Groenprojectenfonds, said, “C&I rooftop solar has vast potential in India. The country (has been) hit hard by the Covid-19 crisis. It is crucial that local private companies continue to develop their business. In order to do so, foreign direct investments are essential.”
Gerrit-Jan Brunink, Senior Investment Manager, Energy & Climate at Triodos, added, “Distributed energy is expected to play an important role in energy transition, and Triodos is determined to expand and work with this team as trusted partners to promote renewable energy, combining impact and solid returns.”
Founded in 2010, Fourth Partner Energy has grown to become a leading distributed solar sector player catering to over 150 major businesses including Walmart, Hindustan Unilever, Ferrero, UltraTech Cement, Coca Cola, PepsiCo, DMart, AkzoNobel, Skoda, Colgate Palmolive and Myntra.