The key sponsor for the Project is Tata Capital Limited (“Tata Capital”), subject to the approval of its Board. Tata Capital is a subsidiary of Tata Sons Limited and caters to the diverse needs of retail, corporate and institutional customers, directly or indirectly through its subsidiaries through consumer finance & advisory services, corporate finance which includes commercial and infrastructure finance, securities business, investment banking and private equity. Tata Capital is headquartered in Mumbai and has a wide network of over 100 branches spanning all critical markets in India. Tata Capital is also setting its footprints in the overseas markets by setting up an international subsidiary – Tata Capital Pte Ltd. - headquartered in Singapore. IFC and other private investors propose to participate in the project through equity investment. Other private investors could include local and international institutions who will be identified shortly.

The initial capitalization of FinCo may be up to $20 million. The proposed IFC investment is an equity investment for acquiring up to 20% stake in FinCo.

5.13 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	5.13

* These investment figures are indicative

FinCo will be headquartered in Mumbai, India and have operations throughout the country.

- Demonstration Effect: This will be the first specialized green finance company in emerging markets; its success would encourage its replication in other markets with significant positive impact globally. - Environmental Impact: Through the activities of the companies that FinCo finances and advises, FinCo is expected to have a significant positive impact on the environment. - Wider Reach: Given the strong sponsorship of the Company by Tata Group, the support from IFC and other high quality partners, the Company will have the credibility and the network to create a wider reach across sectors and market segments in the environmental finance market in India.

- Formulating IFC's Strategy and Business Plan: IFC will play a key role in helping formulate FinCo's strategy and business plan by drawing upon its extensive global experience and knowledge base in areas of focus for FinCo's business. - Selection of International Partners: IFC will help FinCo select international partners by leveraging its extensive network of relationships with institutions that have experience and expertise in this space. - Raising of financial resources: IFC will, over time, support FinCo to raise financial resources to fund its business, particularly medium to long term debt to match the maturity profile of its projected asset base.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will analyze FinCo’s proposed investment activities for types of transactions, size, tenor and industry sectors and determine the Applicable Performance Requirements, if any, that would include a combination of (i) the IFC Exclusion List; (ii) the applicable National Social and Environmental Laws and regulations; and (iii) the IFC Performance Standards.

IFC will also appraise FinCo’s labor practices according to the IFC’s Performance Standards 2: Labor and Working Conditions and recommend the capacity to FinCo to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (“SEMS”). Based on the review, the project will be required to:

Develop a SEMS to the satisfaction of IFC.
Identify responsible, qualified persons to manage and implement the SEMS.
Commit to implement the SEMS, to ensure that its investments/activities are in compliance with the Applicable Performance Requirements.
Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions.
Submit a periodic report to IFC as per a format to be provided by IFC.