KKR to invest $400 million in decarbonisation platform Serentica Renewables (India)
KKR has signed definitive agreements to invest $400 million in Serentica Renewables. Serentica looks to deliver round-the-clock clean energy solutions for large-scale, energy-intensive industrial customers. This includes providing renewable energy solutions through long-term PPAs and working closely with customers to design their paths to net zero electricity. The company has entered into three long-term PPAs and is in the process of developing around 1,500 MW of solar and wind power projects across various states including Karnataka, Rajasthan and Maharashtra.
ReNew Power receives green project financing from Bank of America
ReNew Power has received funding of approximately Rs 8 billion from the Bank of America for financing projects in the renewable energy segment. The five-year rupee-denominated green loan facility will help the company lower funding costs as the proceeds will be used primarily to prepay an existing offshore loan before its scheduled repayment date. This refinancing facility will help the company save funding costs of about 200 basis points. The credit line is linked to two dedicated solar projects in India. Cash flows from these two projects will be used to repay the loan.
NHPC board approves merger of subsidiary Jalpower Corporation
NHPC Limited’s board has approved a proposal to merge the company’s wholly owned subsidiary, Jalpower Corporation Limited, with itself. Since the merger is between a wholly owned subsidiary and a holding company, no cash or issue of new shares will be undertaken. The merger will lead to efficient utilisation of capital and create a consolidated base for NHPC’s future growth, facilitate focused management and efficient utilisation of assets, avoid duplication of administrative functions, and eliminate multiple record-keeping.
Sembcorp to acquire 100 per cent stake in GIP-backed Vector Green for Rs 27.8 billion
Sembcorp Industries’ wholly owned subsidiary, Sembcorp Green Infra Limited, has signed an agreement with India Infrastructure Fund II, a fund managed by Global Infrastructure Partners India Private Limited, to acquire 100 per cent interest in Vector Green Energy Private Limited for a base equity consideration of about Rs 27.8 billion. The portfolio includes 495 MW of solar capacity and 24 MW of wind capacity in operation, with 64 MW of solar projects under development. With this acquisition, Sembcorp’s gross renewables portfolio installed and under development in India will touch 3 GW, comprising 1 GW of solar assets and 2 GW of wind assets.
SBI signs Rs 12.4 billion loan agreement with Germany’s KfW for solar projects
The State Bank of India (SBI) has signed a Rs 12.4 billion loan agreement with German development bank KfW for funding solar projects. The long-term loan, under the Indo-German solar partnership, will facilitate new and upcoming capacities in the solar sector and further contribute to the country’s goals announced at COP26.
LIC dilutes its shareholding in NHPC and Powergrid
Life Insurance Corporation of India (LIC) has diluted its shareholding in NHPC Limited from 7.23 per cent to 5.203 per cent of the paid-up capital of NHPC for Rs 7.01 billion. It has sold over 2.027 per cent of its holding in NHPC during the period from March 17, 2022 to October 18, 2022 at an average cost of Rs 34.42. The shares were sold through an open market sale. In a separate development, LIC has sold over 2.003 per cent of its holding in Power Grid Corporation of India Limited (Powergrid) for Rs 30.79 billion during the period from May 18, 2022 to October 11, 2022. The shares were sold at an average price of Rs 220.40 per share through an open market sale. Consequently, LIC’s shareholding in Powergrid has diluted from 5.303 per cent to 3.30 per cent of the paid-up capital of the company.
Adani Transmission signs definitive agreement to acquire Alipurduar Transmission Limited from KPTL
Adani Transmission Limited has acquired the second tranche of 25 per cent stake in Alipurduar Transmission Limited from Kalpataru Power Transmission Limited (KPTL). Adani Transmission had already acquired its first tranche of 49 per cent stake in Alipurduar Transmission from KPTL in November 2020, by signing definitive agreements of sale for a total enterprise value of about Rs 12.86 billion. With the current deal, KPTL has transferred about 74 per cent of the total equity shares of Alipurduar Transmission, with an agreement to sell the balance 26 per cent to Adani Transmission, after obtaining the requisite regulatory and other approvals.
ADB to finance the shift to electric mobility in Vietnam (Vietnam)
The Asian Development Bank (ADB) has approved a $135 million financial package to develop Vietnam’s first fully electric public transport bus fleet and an electric vehicle charging network. The financing has been awarded to VinFast Trading and Production Joint Stock Company to oversee the deployment. The package consists of seven-year tenor financings, including a $20 million loan from ADB, $87 million worth of parallel loans that were facilitated by ADB as the mandated lead arranger, and $28 million in concessional financing. Vietnam’s transport sector accounts for 18 per cent of annual greenhouse gas emissions. This move is in line with the government’s aim to achieve net-zero emissions by 2050.