KKR-backed Virescent Plans Rs. 425 Crore InvIT to List its Indian Solar Assets

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Virescent Infrastructure, a renewable energy platform backed by global asset manager KKR & Co, is looking to raise Rs 425 crore for its solar power assets in India.

The company has filed a draft placement memorandum with the securities regulator to list its infrastructure investment trust or InvIT – Virescent Renewable Energy Trust.

Mumbai headquartered Virescent currently manages 394.35 megawatt (MW) of solar assets in Maharashtra, Gujarat, Rajasthan, Uttar Pradesh and Tamil Nadu.

The trust will use Rs 349.5 crore of the net proceeds from the listing to repay a part of Virescent Renewable’s outstanding external borrowing of Rs 934.5 crore.

The remaining proceeds will be paid to Sindicatum as part of a holdback milestone payment, in addition to what KKR paid it last year, and for general corporate purposes.

In May this year Virescent Infrastructure has acquired the 76 megawatt (MW) India solar asset portfolio of Singapore-based Sindicatum Renewable Energy Company Pte Ltd. The acquisition was in line with Virescent’s strategy to acquire operational renewable energy assets that have stable long-term cashflows with government counterparties across India.

In April 2020, KKR and leading infrastructure developer Shapoorji Pallonji Infrastructure Capital announced the signing of definitive agreements under which KKR will acquire five solar energy assets from SP Infra for total consideration of INR 15.54 billion (approximately US$204 million). The portfolio comprises of assets with a capacity of 169 MWp in Maharashtra and assets with a capacity of 148 MWp in Tamil Nadu.

In February this year, Virescent Infrastructure has floated the first infrastructure investment trust (InvIT) in the green power space. The InvIT aims to achieve approximately 1.5 GW assets in the next two to three years.

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