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Japan’s MUFG Bank (MUFG) has committed an INR 450 crore sustainable trade fund for Tata Power, the company said in a statement.
This credit has been extended for solar projects under TP Kirnali Limited (TPKL). Established in 2020, TPKL is a 100 percent owned subsidiary of Tata Power Renewable Energy Limited (TPREL), a clean energy platform.
It is the first sustainable trade finance facility offered by MUFG in India and TPKL will use the funds towards building renewable energy capacity. The partnership will open up additional opportunities to leverage green finance as Tata Power continues to strengthen its Use clean energy and contribute to India’s central goal.
Sanjeev Churiwala, CFO, Tata Power, said: “The association will open up opportunities to explore more green finance upgrades as we expand our clean energy portfolio and contribute significantly to India’s net zero goals.”
The Bank of Japan has extended this financing to finance TPKL’s procurement of two solar power projects – a 100MW project in Parthur, Maharashtra and a 120MW project in Mesanka, Gujarat – under paper trade finance.
Belinda Han, Head of Transaction Banking Asia Pacific at MUFG, said: “As more companies include ESG goals as part of their KPIs, MUFG is committed to supporting our clients towards achieving these goals. This facility is designed to support our clients’ sustainability agenda and drive the greening of global supply chains and we are excited to launch it in India.”
Tata Power is committed to becoming net carbon neutral by 2045 and MUFG has announced a commitment to achieve net emissions in its financial portfolio by 2050 and its own operations by 2030.
MUFG is a global leader in renewable generation projects and has been ranked first in Bloomberg’s league table for clean energy financing for six of the past nine years.
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