Tata Cleantech Capital receives $50 million sustainability-linked bond from IFC

The International Finance Corporation (IFC) announced a $50 million investment in a sustainability-linked bond (SLB) issued by Tata Cleantech Capital (TCCL). The funding will assist in diversifying the company’s borrowing profile in the fight against climate change.

SLBs focus on impact and measurable results, going beyond the end-use focused approach of green, social, and sustainable instruments, and helping organisations improve performance against tailor-made environment, social, and governance targets that also contribute to the United Nations Global Goals. According to the company, it will work over the next three years to increase on-lending to renewable energy projects while also diversifying into the energy efficiency and e-mobility sectors.

In January 2023, Tata Power received a Rs 4.5 billion sustainable trade finance facility from Mitsubishi UFJ Financial Group Bank (MUFG) to fund solar projects in Gujarat and Maharashtra. The credit facility will be used by Tata Power to fund a 120 MW solar project in Mesanka, Gujarat, and a 100 MW project in Parthur, Maharashtra. Both projects will be carried out by the company’s clean energy subsidiary, TP Kirnali.