Financial Briefs

India and overseas

Powergrid InvIT public issue subscribed by 10 per cent on the first day

The public issue of Powergrid Infrastructure Investment Trust, the first InvIT offering by a state-owned entity, garnered 10 per cent subscription on April 29, 2021, the first day of the issue. The issue received bids for 43.2 million equity shares against the issue size of 425.4 million shares. The portion of the share sale reserved for qualified institutional investors was subscribed by 3 per cent on day one, while that reserved for non-institutional investors was subscribed by 20 per cent.

IndiGrid acquires NER-II Transmission for Rs 46.25 billion (India)

The India Grid Trust (IndiGrid) has completed the acquisition of North Eastern Region II [NER-II] Transmission Limited from Sterlite Power at an enterprise value of Rs 46.25 billion. NER-II is a part of the interstate transmission scheme network, and was awarded on a build-own-operate-maintain basis for a contractual period of 35 years. The project has 11 elements, including two substations of 1,260 MVA capacity and four transmission lines extending over 830 ckt. km. With this acquisition, IndiGrid’s asset under management has increased by 34 per cent to Rs 200 billion.

PFC completes resolution of stressed Rangit-IV HEP

A consortium consisting of the Power Finance Corporation (PFC) as lead financial institution and Punjab National Bank as co-lender has successfully completed the resolution of Jal Power Corporation Limited’s (JPCL) 4×30 MW Rangit-IV hydroelectric Project (HEP) in Sikkim. The stressed project was handed over to NHPC Limited on March 31, 2021 after the payment of a resolution amount to the tune of

Rs 1.65 billion to the lenders. The corporate insolvency resolution process for JPCL was initiated in April 2019. In December 2020, the National Company Law Tribunal approved NHPC’s resolution plan for the project. The remaining work at the project is scheduled to be completed in 38 months.

Amplus Solar acquires 7.2 MW of solar rooftop projects from Sterling and Wilson

Amplus Solar has acquired 17 on-site operational rooftop solar projects aggregating 7.2 MW of capacity from Sterling and Wilson Private Limited. The projects are spread across the states of Punjab, Haryana, Madhya Pradesh, Maharashtra, Rajasthan, Telangana and Karnataka, and have been supplying solar power to 13 industrial, commercial and institutional customers.

GE Power to acquire 50 per cent equity stake in NGSL from GE Power Systems GmbH

GE Power India Limited’s board has approved the acquisition of 50 per cent stake in NTPC GE Power Services Private Limited (NGSL) for Rs 72 million. NGSL is a 50:50 joint venture between NTPC Limited and GE Power Systems GmbH. The acquisition of shares by GE Power India from GE Power Systems GmbH is a related-party transaction, as the two companies are GE Group Affiliates. The acquisition is expected to be completed by April 30, 2021.

IFC proposes $50 million debt finance for Thar Surya’s 300 MW solar power project

The International Finance Corporation (IFC) has proposed a $50 million debt finance for the construction of a 300 MW solar power project under Thar Surya 1 Private Limited in Bikaner, Rajasthan. Additionally, IFC will mobilise a $100 million debt through parallel lenders. The total solar power project cost is estimated at $200 million. The project is being sponsored by Enel Green Power India, a subsidiary of Enel Green Power S.p.A. The power generated from the plant will be sold to the Solar Energy Corporation of India under a 25-year power purchase agreement.

Azure Power signs binding agreement for sale of non-core solar rooftop portfolio to Radiance Renewables

Azure Power Global Limited has signed a binding agreement for sale of its non-core solar rooftop portfolio to Radiance Renewables Private Limited for a total consideration of Rs 5.37 billion, subject to purchase price adjustments. The acquisition will cover 152.5 MW of assets, including 8.1 MW of assets under construction and 18.5 MW of recently commissioned assets. Radiance Renewables is a 100 per cent subsidiary of the Green Growth Equity Fund, an alternative investment fund managed by EverSource Capital.

AGEL acquires 100 per cent equity stake in Spinel Energy and Infrastructure

Adani Green Energy Limited (AGEL) has acquired a 100 per cent equity stake in Spinel Energy and Infrastructure from Hindustan Cleanenergy Limited and Peridot Power Ventures Limited. This acquisition of 100 per cent of the share capital and securities of Spinel Energy and Infrastructure will add 20 MW to the existing capacity of AGEL, and help in expanding its network to meet its decarbonisation target. The acquisition is a part of the overall growth strategy of AGEL to build a capacity of 25 GW by 2025.

BB Energy acquires Solarcentury Africa (Africa)

BB Energy has acquired Solarcentury Africa, an integrated solar power developer based in Africa. BB Energy is one of the world’s leading independent energy trading companies with a historical presence and large consumer network in Africa. The transaction will give BB Energy Renewables Division access to a pipeline of 2.1 GW capacity of solar energy and battery storage projects across Africa. This acquisition is the second investment of BB Energy Renewables Division in less than a year. It will also be their first fully owned subsidiary.


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