CDC Group bets more on Fourth Partner, invests $42 mn in Enel unit

 CDC Group bets more on Fourth Partner, invests $42 mn in Enel unit

CDC Group Plc, the UK government’s development finance institution that will change its name to British International Investment from next month, has agreed to invest $89 million in two Indian companies.

The firm made a Rs 350-crore ($47 million) follow-on commitment to Fourth Partner Energy and a Rs 315 crore ($42 million) project finance debt investment in Thar Surya 1 Pvt. Ltd, an Indian subsidiary of Enel S.p.A, Italy.

Both investments will target expansion of renewable power in India, CDC said.

The fresh investment in Fourth Partner expands CDC’s total exposure to the company to $80 million; it had committed $33 million to the company in April last year.

The follow-on commitment will fund about 294 MW of greenfield renewable generation capacity across India, Sri-Lanka, Bangladesh, Indonesia and Vietnam, CDC said.

CDC, one of the most active DFIs in India, also said the debt investment in Thar Surya 1 forms part of an estimated $200 million total project that aims to fund the development, construction, and maintenance of a 300 MW solar project in the South Asian nation.

CDC said the two investments are part of its five-year strategy that has a target for 30% of its new investments to be in climate finance, with a focus on investing in clean and renewable infrastructure. It has also pledged to commit $1 billion in climate finance to India over the next five years.

“Investing to bolster India renewable energy is a critical strategic step toward ensuring the country’s growth ambitions align with its goals to achieve a net-zero carbon future,” said Srini Nagarajan, Managing Director and Head of Asia at CDC.

Sumit Upadhyaya

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