Project detail - Sunsure Solarpark Forty-Nine Private Limited

Who is our customer?

Sunsure Energy Private Limited (“Sunsure”) is a reputable Indian full-stack renewable energy developer with approximately 810MWp of operational capacity across India and a pipeline of over 2.5 GWp under development, primarily serving Commercial and Industrial (“C&I”) customers. Sunsure was originally an Engineering, Procurement, and Construction (“EPC”) company, until its transition into an Independent Power Producer (“IPP”) player in 2023, leveraging its in-house EPC and Operations and Maintenance (“O&M”) capabilities to execute new project developments. To support Sunsure’s vision of decarbonizing India’s industrial sector and its ambition to achieve approximately 5 GW of targeted capacity by 2030, Partners Group, a Switzerland-listed global equity fund managing assets of approximately USD 152 billion, has committed a significant equity investment to Sunsure and backed the company’s endeavor in upscaling its corporate governance standards and social responsibilities.

What is our funding objective?

FMO participates in a senior project finance loan of approximately USD 30 million (FMO participation: ~USD 22mln), provided in local currency, to finance a 75 MWp solar PV project in Tamil Nadu, India. The loan is distributed across four facilities, each belonging to an SPV within the Project, namely Sunsure Solarpark Twenty Three Pvt Ltd (“SS23”), Sunsure Solarpark Twenty Four Pvt Ltd (“SS24”), Sunsure Solarpark Forty Four Pvt Ltd (“SS44”), and Sunsure Solarpark Forty Nine Pvt Ltd (“SS49”). The use of proceeds aims to fund capital expenditures of the project development.

Why do we fund this investment?

The rationale for this financing fits well with FMO's Energy sector strategy, considering its investment in a 100% green initiative in a lower-middle-income country (“LMIC”), supporting a local renewable energy developer to accelerate its growth, and closing the financing gap in the market. FMO’s participation will support the Government of India’s effort to achieve its non-fossil fuel-based electricity target of 500 GW by 2030. 100% of FMO’s investment is labelled as Green as it supports activities that contribute to climate mitigation, contributing to SDG 13, in line with FMO's methodology to determine the green finance attribution.

What is the Environmental and Social categorization rationale?

FMO's E&S category for this transaction is B+. Key impacts relate to biodiversity impacts, solar supply chain Human Rights issues, impacts specific to the construction period (occupational health and safety, labour conditions and workers influx) and potential economic displacement along the transmission line route. The following IFC Performance Standards are triggered. • PS 1: Assessment and Management of Environmental and Social Risks and Impacts; • PS 2: Labor and working conditions, • PS 3: Resource Efficiency and Pollution Prevention, • PS 4: Community Health, Safety and Security; • (potentially) PS 5: Land acquisition and involuntary resettlement; and • PS 6: Biodiversity conservation and sustainable management of living natural resources and IFC PS 8 (Cultural Heritage). • IFC PS 7 (Indigenous Peoples) is not triggered as the land identified for the project does not fall within a Schedule V area, and is not owned or occupied by Scheduled Tribes. Scheduled Tribes in India are officially recognized indigenous communities under the Indian Constitution. Field consultations also confirm that no Indigenous Peoples (IPs), as defined under IFC Performance Standard 7 (PS7: Indigenous Peoples), have been affected by the project activities.