Edelweiss Infrastructure Yield Plus (EIYP), an alternative investment fund from the Edelweiss Group, on Thursday snapped up a controlling 74 per cent stake in French utility Engie Group's solar assets in India for a reported USD 550 million.
The Engie Group has 813 MW of operational solar assets in the country, and it plans to add up to 2 GW more over next couple of years, which once commissioned will be acquired by the EIYP, the fund said.
Though EIYP, managed by Edelweiss Alternative Asset Advisors (EAAA), did not disclose the value of the deal, a source in the know of the deal told PTI that EIYP has paid USD 550 million for the 74 per cent stake in the assets, making it one of the largest deals in the domestic renewables space in the past one year.
"This partnership between EIYP and Engie is aimed at creating a high-quality solar platform of substantial scale with a plan to add 2 GW solar assets over the next couple of years. These assets will be developed by Engie and acquired by EIYP post-commissioning under the agreed terms," the fund said in a statement.
The investment has been carried out through Sekura Energy, which is the renewables-focused platform of EIYP that invests, acquires and operates assets in the domestic energy sector, the statement added.
EIYP is the largest yield-focused infrastructure AIF (alternative investment fund) in the country today and the only platform owning and operating assets in all three large infrastructure sectors -- transmission, solar energy and highways.
With an AUM of over Rs 30,500 crore, the EAAA provides long-term growth capital to companies and projects. This investment is in line with EIYP's strategy to generate regular yields and create value for its investors by taking controlling stake in quality operating infrastructure assets with strong cash flows, the fund said.
Acquiring operating infra assets helps developers to unlock capital and deleverage, enabling them to take on newer and larger opportunities, Hemant Daga, chief executive of Edelweiss Asset Management, said.
This partnership accelerates our strategy to become a leading infrastructure asset owner and investor, said Subahoo Chordia, the head of infra fund business at EAAA.
Edelweiss Asset Management is one of the leading asset management platforms, housing the country's largest alternatives platform and the fastest growing mutual fund business.
It currently manages customer assets aggregating to around Rs 79,500 crore, of which alternatives assets are at Rs 30,500 crore and the rest Rs 49,000 crore under mutual fund.
EIYP is a Sebi-registered category I AIF investing in infrastructure like power transmission, renewables, and roads and highways among others. It is the largest yield focused infrastructure AIF in the country with capital commitments from both domestic and global investors.