DCM TCCL SLB (IFC-45800)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 13, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
TATA CLEANTECH CAPITAL LIMITED
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 4, 2022

Disclosed by Bank May 11, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to IFC, the proposed investment comprises upto INR3,750million (US$50 million equivalent) investment in Tata Cleantech Capital Limited (TCCL or the Company) through subscription of secured non-convertible debentures (NCDs) to be issued by the Company. The proceeds of the IFC investment will be primarily used to finance wind and solar projects and to a limited extent sectors such as energy efficiency, e-mobility, green-warehousing and water. Setup in 2011, TCCL is registered with the Reserve Bank of India (RBI) as a Systemically Important Non-Deposit Accepting Non-Banking Financial Infrastructure Finance Company (NBFC-IFC), engaged in the business of providing finance and advisory services for projects in renewable energy, energy efficiency, waste management, water management and cash flow-based infrastructure finance.

The sustainability linked bond will be amongst the first few private sector led issuances by a financial institution in India and the wider Asia region.   

Some of these projects may be in early stages of development, i.e., where construction is involved, while others will be operational assets. Most of the projects are expected to be medium risk in nature with very few in high-risk category (typically large capacity renewable energy projects). Overall, the E&S risk of the proposed investment is medium, and the project is categorized as FI-2 in accordance with IFC’s Environmental and Social Sustainability Policy.                                                

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

Potential E&S risks arise from the construction and operation phase of the projects. This includes risk and impacts related to Occupational Health & Safety (OHS), Labor and working conditions including that of third-party workers and workers engaged in primary supply chain, impact on avifauna, and community grievances. In some early-stage projects, there may be issues related to land, indigenous peoples, and biodiversity depending on location of the projects. Most of these risks and impacts can be identified and managed through adequate due-diligence, implementation of management plans and portfolio monitoring. The project will not support coal-related activities and will not finance any higher risk business activities that may include a) involuntary resettlement, b) risk of adverse impacts on indigenous peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage d) significant occupational health and safety risks. The Company will publicly disclose information on Category A and other qualifying climate related sub-projects that will be supported by this IFC investment. The applicable performance requirements for this project will be i) the Exclusion List; ii) the host country laws and regulations; and iii) the IFC Performance Standards.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The investment comprises a secured debt investment of up to INR3,750 million (US$50 million equivalent) structured as unlisted redeemable non-convertible debentures (NCDs). IFC will explore structuring the NCD as a Sustainability Linked Bond (SLB). 

 

Private Actor Relationship
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The shareholders of TCCL are Tata Capital Limited (TCL, 80.5%) and International Finance Corporation (19.5%). Tata Sons Private Limited holds 94.55% in TCL as on December 31st, 2021.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

TCCL is headquartered in Mumbai and has lending operations to projects across India.As of December 2021, TCCL has an asset under management (AUM) of c.US$953 million and a networth of US$212 million. As of December 2021, TCCL’s loan book composition is as follows: solar (50%), wind (22%), road (11%), transmission (2%), emerging sectors such as e-mobility, energy efficiency, etc. and others including water management and corporate loans comprise the balance 15%. 


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Tata Cleantech Capital Limited
Swati Bharadwaj
Head-Strategic Partnership
+91 22 6606 9000
Swati.Bharadwaj@tatacapital.com
11th Floor, Tower A, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400013
https://www.tatacapital.com

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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How it works