KKR sponsored Virescent Infrastructure on Wednesday said that it has set up India’s first renewable energy infrastructure investment trust (InvIT), Virescent Renewable Energy Trust (VRET).
According to a statement, VRET has raised Rs 4.6 billion or Rs 460 crore ($62 million) from a group of foreign and domestic investors.
Leading the transaction, on behalf of its clients, is Alberta Investment Management Corporation (AIMCo), one of Canada’s largest institutional investment managers.
KKR set up Virescent in October 2020 to acquire operating renewable energy assets in India. This comes at a time where renewables is set to play an increasingly critical role in powering India’s energy needs and estimated to make up 60 per cent of India’s installed power capacity by 2030.
The KKR has invested in VRET from its Asia Pacific Infrastructure Investors Fund.
VRET’s initial portfolio comprises of nine operational solar projects, with an aggregated capacity of approximately 395 MWp.
The assets are located in Maharashtra, Tamil Nadu, Uttar Pradesh, Gujarat and Rajasthan. In addition, subject to applicable approvals, VRET is in advanced discussions to acquire 55MWp portfolio from Focal Energy.
VRET has been assigned ‘AAA/Stable’ rating for its loan facilities from CRISIL and India Ratings, S&P and Fitch’s India affiliates, respectively.
Sanjay Grewal, CEO, Virescent Infrastructure, said, “Our endeavour is to support the government in achieving its medium and long term renewable energy objectives of 175 GW and 450 GW, respectively.”
Investing in VRET alongside AIMCo and other institutional investors will help us to capitalise on this huge market opportunity, said Hardik Shah, Managing Director, KKR Infrastructure.
“We will continue to support Virescent and its management team in providing greater renewable energy solutions to communities across India,” he added.
Axis Capital acted as the lead manager to the issue. Shardul Amarchand and E&Y acted as the legal advisors and tax advisors, respectively to the issue.
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