ENGIE and Edelweiss Infrastructure Yield Plus announce strategic partnership for solar assets in India.
Edelweiss Infrastructure Yield Plus (EIYP), an AIF managed by Edelweiss Alternative Asset Advisors Limited (EAAA), has concluded acquisition of stake under a strategic partnership with Engie Group, the leading French utility, towards acquiring a controlling stake in its solar energy assets in India.
This partnership between EIYP and Engie is aimed at creating a high-quality solar platform of substantial scale with a plan to add 2 GW solar assets in India over the next couple of years, EAAA said in a statement.
It added that these assets will be developed by Engie and acquired by EIYP post commissioning as per agreed terms.
In line with both ENGIE’s and EIYP’s strategies, ENGIE has agreed to sell (once the transaction has closed in accordance with its terms) a 74% stake in 12 solar assets aggregating 813 MWp of operating capacity collectively to EIYP and Sekura Energy Limited, a portfolio company of EIYP. The completion of this transaction, subject to the usual conditions associated with this type of operation, is expected to occur during the first half of 2020 and will allow ENGIE to reduce its net debt by more than EUR 400 million.
“Acquiring operating infrastructure assets helps developers to unlock capital and de-lever, enabling them to take on newer and larger opportunities. As India, transitions to clean energy, this model will be the core to the country’s ambitious renewable capacity expansion program”, said Hemant Daga, CEO, Edelweiss Asset Management.
“We are excited about this strategic partnership, which brings the complementary capabilities of the fund and ENGIE together while sharing similar high governance standards and values. EIYP will benefit from access to a strong future pipeline of quality solar assets to be developed and constructed by ENGIE under the terms of the agreement. This will also grow EIYP’s Sekura Energy platform and make us a large investor in Indian energy space.” said the Head of EIYP, Subahoo Chordia.