MUFG bank finances sustainable development in India

MUFG bank announces that it is providing a sustainable trade finance facility for Tata Power in India.

MUFG credit facilities

MUFG says the deal is for INR 450 crore in funding for Tata Power. This credit facility extends to TP Kirnali Limited (TPKL) solar projects. Incorporated in 2020, TPKL is a wholly owned subsidiary of Tata Power Renewable Energy Limited (TPREL), a clean energy platform.

This is the first sustainable trade finance facility offered by MUFG in India. TPKL will use the funds to generate renewable energy capacity. Thus, the collaboration will open up new opportunities to raise green finance.

Two solar projects from Tata Power

MUFG is extending this credit to finance the acquisition of TPKL’s two solar energy projects. The first project is located in Parthur, in the Indian state of Maharashtra. The second 120MW project is in Mesanka, in the Indian state of Gujarat.

Belinda Han, MUFG’s head of Asia-Pacific banking transactions, says :

“MUFG is honored to partner with Tata Power on this landmark sustainable trade finance facility. As more and more companies include ESG goals in their KPIs, MUFG is committed to supporting our clients in achieving these goals. This facility is designed to support our clients’ sustainability programs and catalyze the greening of global supply chains and we are excited to launch it in India.”

Mumbai-based Tata Power aims to become net zero carbon by 2045. In addition, the company currently has 14,076MW of installed capacity.