Japan International Cooperation Agency (JICA) has signed a loan agreement with Tata Cleantech Capital Limited (TCCL), an Indian non-banking financial company. The financing for a maximum amount of JPY 10 billion will help support TCCL to offer loans to businesses across India that focus on renewable energy generation, e-mobility solutions as well as energy efficiency. The loan, provided through the Private Sector Investment Finance scheme of JICA is co-financed with the Sumitomo Mitsui Banking Corporation (SMBC).According to a statement, JICA’s loan will support TCCL to mitigate the impact of climate change by offering green finance, which will contribute to decrease the emission of GHG in India.
TCCL is a joint venture between Tata Capital Limited and the International Finance Corporationand is a first of its kind private sector green investment bank with focus on climate finance and advisory services. Since its inception, TCCL has contributed to the development of 9.8 GW of renewable energy capacity and has a robust loan portfolio of $850 million. With a domestic credit rating of AAA from CRISIL (an S&P Global Company), it has been inducted in the Green Bank Network, the first private sector climate finance institution to be a part of this network.
In January 2021, CDC Group, UK’s development finance institution had announced a $30 million loan facility through its directed green lending facility. In 2019, TCCL had raised $25.62 million through green bonds from FMO, the Netherlands Development Finance Company and had also secured a $100 million credit line from Green Climate Fund to develop the rooftop solar market in India in 2019.