Project detail - Sunsure Solarpark Twenty Three Private Limited

Who is our prospective customer?

Sunsure Energy Private Limited (“Sunsure”) is an Indian full-stack reputable renewable energy developer with ~480MWp operational capacity across India and over 2.5 GWp pipeline 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 in decarbonizing India’s industrial sector and ambition of ~5 GW targeted capacity by 2030, Partners Group, a Switzerland-listed global equity fund managing assets of ~USD 152bln, has committed 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 loan project financing of ~USD 30mln (FMO participation ~USD 22mln) (in local currency form) to finance a 75 MWp solar PV project in Tamil Nadu, India. The loan is distributed into the four facilities belongs to each SPVs 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 want to fund this investment?

The rationale of this financing fits well with FMO Energy sector strategy, considering investing in a 100% green initiative within 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 rapid growth non-fossil fuel-based electricity target of 500 GW by 2030.

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 there are no Scheduled Tribes in the project area. Scheduled Tribes in India are officially recognized indigenous communities under the Indian Constitution.