The deal is valued around $199 million
India Grid Trust (IndiGrid), an infrastructure investment trust controlled by private equity firm KKR & Co., is set to acquire a 300MW solar power project in Rajasthan following a deal with green energy firm ReNew Power, as reported in an article by VCCircle.
The asset, which is operated by ReNew Solar Urja Pvt Ltd, will be valued at about $199 million. The firm stated that the deal will also have an additional earn-out component worth $8 million paid to ReNew on account of change-in-law proceeds after the first payment is realised.
ReNew will be transferring the outstanding debt of the asset to IndiGrid which will result in a cash inflow of around $82 million. IndiGrid will be funding the acquisition through a combination of equity, internal accruals, and debt.
ReNew is majority owned by Canada Pension Plan Investment Board, following the investment management firm’s acquisition of $268.6 million shares from Goldman Sachs, which made its stake to the energy firm reach 51.6 percent. The energy firm is also backed by Abu Dhabi Investment Authority, the Global Environment Fund, and Japan’s JERA.
The solar project based in Jaisalmer, Rajasthan was commissioned in December 2021 with a 25-year purchase agreement with Solar Energy Corp of India and was set to be the largest capacity project located at a single site for IndiGrid.
“India is witnessing a steep increase in its power demand to fuel its rapid economic growth. In view of India’s focus on energy transition, we are confident of the strategic value of renewable energy projects in the coming decades,” said Harsh Shah, IndiGrid CEO, as quoted in VCCircle.
With the acquisition, IndiGrid stated that it will be increasing its portfolio of operating solar assets to more than 1 GW peak capacity.
