KKR’s Virescent gets $62 mn from Canada’s AIMCo for green energy InvIT

 KKR’s Virescent gets $62 mn from Canada’s AIMCo for green energy InvIT

Virescent Infrastructure, an Indian renewable energy platform set up by private equity firm KKR, said Wednesday its infrastructure investment trust has raised Rs 460 crore ($62 million) from foreign and domestic investors.

Alberta Investment Management Corporation (AIMCo), one of Canada’s largest institutional investment managers, led the investment in Virescent Renewable Energy Trust, the renewable energy company said.

The announcement comes two months after The Capital Quest reported that Virescent Infrastructure was floating an InvIT to raise at least Rs 425 crore for its solar power assets in the country.

KKR set up Virescent in October 2020 to acquire operating renewable energy assets in India, seeking to tap into growth opportunities in a market where demand for electricity is only expected to rise.

KKR invests in Virescent Renewable from its Asia Pacific Infrastructure Investors Fund.

Virescent Renewable’s initial portfolio comprises nine operational solar projects with a total capacity of 395 MWp. The assets are located in Maharashtra, Tamil Nadu, Uttar Pradesh, Gujarat and Rajasthan.

KKR had last year bought five solar energy assets from Shapoorji Pallonji Group for Rs 1,554 crore. In October last year, the PE giant housed the five assets into Virescent. In May this year, it acquired the India solar assets of Singapore’s Sindicatum. In addition, it is in advanced discussions to acquire a 55 MWp portfolio from Focal Energy.

Virescent Renewable plans to use a bulk of the money, almost Rs 350 crore, to repay debt of the assets. Part of the balance amount would be paid to Sindicatum.

Hardik Shah, managing director at KKR Infrastructure, said that Virescent is an important part of KKR’s infrastructure strategy in Asia Pacific and that fresh investment will help it to capitalise on the huge market opportunity in India.

Axis Capital acted as the lead manager to the issue. Shardul Amarchand and E&Y acted as the legal advisors and tax advisors, respectively.

Sumit Upadhyaya

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