Accretive Cleantech Finance PvT Ltd
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Ecofy is a non-banking financial institution set up in India in 2022. It aims to finance the green transition by originating loans to ‘green’ sectors including Retail EV’s, rooftop solar and SME loans for improving energy efficiency. Ecofy is active across India and targeted customers include the retail sector and SME’s. Ecofy is promoted by Eversource Capital, a climate impact investor & partner of FMO.
What is our funding objective?
Ecofy’s objective is to increase the adoption of environmentally friendly products at the retail level by improving access to finance for purchase of such products. The capital infused by FMO is expected to catalyze the growth of the company, which relates to increasing the number of loans disbursed, product diversification and advancing its presence across India.
Why do we fund this investment?
The investment opportunity is in line with FMO’s goal for climate action (SDG13) and Ecofy has received a 100 % green label as they will only finance climate positive segments/businesses. Through this vehicle FMO aims to contribute to decarbonizing energy – which is critical in a country like India with a large growing economy. FMO’s funding (via MASSIF & Building Prospects) is expected to act as a catalyst to attract both commercial & blended finance in the future.
What is the Environmental and Social categorization rationale?
The project has been categorized as E&S Category C, in accordance with FMO’s Sustainability Policy - as Ecofy is mainly a retail and SME financing company. While the direct E&S risks to this type of business largely relate to labor conditions and health and safety, the indirect risks include the E&S impact of underlying SME clients to whom Ecofy lends to. Ecofy has developed ESG policies and exclusion lists in alignment with national and international E&S safeguards to identify, manage and monitor the environmental and social risks and opportunities in their lending operations. Furthermore, Ecofy is in the process of putting in place an Environment & Social Management System (ESMS).
More investments
| Date | Total FMO financing |
|---|---|
| 1/25/2024 | INR 450.00 MLN |
- Website customer/investment
- https://www.ecofy.co.in/
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 9/15/2023
- Effective date
- 1/25/2024
- Total FMO financing
- INR 450.00 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C