India Grid Trust (IndiGrid), the KKR-owned first Infrastructure Investment Trust (InvIT) in the Indian power sector, has acquired India portfolio of Fotowatio Renewable Ventures (FRV), the Madrid-based developer, in a deal worth Rs.660 crore.
India Grid Trust has signed a purchase agreement for acquisition of 100% in FRV Andhra Pradesh Solar Farm-I & FRV India Solar Park II – from FRV Solar Holdings, company said on Saturday.
India Grid Trust is in advanced discussions to acquire India portfolio of Fotowatio Renewable Ventures (FRV), ET first reported in September.
Khaitan &Co and Greenstone Advisors represented FRV Group on the transaction.
FRV, owned by Abdul Latif Jameel Energy and Environmental Services, operate 100 MW (AC) solar power plants in Ananthapuramu Solar Park and entered into power purchase agreement (PPA) with SECI in 2016 for tenor of 25 years. FRV had been awarded PPA under the National Solar Mission program at a tariff of Rs.4.43/unit.
FRV had been in discussion with various power producers, investors such as Hero Future Energies, EverSource and Edelweiss to sell India assets, which did not fructify. FRV, which was acquired by the Saudi Arabia-headquartered Abdul Latif Jameel Group in April 2015, has sold out several businesses worldwide.
As its first infra bet in India, KKR had joined hands with Singapore’s Infra Holdings Pte to manage the infrastructure investment trust (InvIT) of Sterlite Power Transmission – India Grid Trust, in May last year.
KKR had invested Rs 1,084 crore and GIC invested Rs 980 crore. KKR, a cosponsor of IndiGrid owns 74% stake in Sterlite Investment Manager, which manages the trust.
India Grid had acquired about five transmission projects from its sponsor Sterlite Power Ventures for a total enterprise value of Rs 11,539 crore ($1.65 billion).
Presently, IndiGrid owns 10 operating projects consisting of 25 transmission lines with more than 6,080 ckms length and 7 substations with 10,735 MVA transformation capacity. IndiGrid has assets under management (AUM) worth Rs.13,300 crore ($1.80 bn).
India has set a target of having 100GW of solar energy by 2022. As of August 31, 2020, the total installed solar power generation capacity stood at 35.73 GW in the country out of the total renewable energy of 88.79 GW.
