KKR’s Virescent Renewable InvIT Raises Rs 460 Crore from Consortium Led by AIMCo

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Virescent Renewable Energy Trust (VRET), India’s first renewable energy infrastructure investment trust (InvIT) from KKR’s Virescent Infrastructure, has raised Rs 460 crore from a group of investors led by Alberta Investment Management Corporation (AIMCo).

“We look forward to drawing on the global investment management expertise of our investors as we continue to acquire high-quality assets for achieving our initial growth targets. Our endeavour is to support the government in achieving its medium- and long-term renewable energy objectives of 175 GW and 450 GW, respectively,” Sanjay Grewal, CEO, Virescent Infrastructure, said.

VRET’s initial portfolio comprises of nine operational solar projects, with an aggregated capacity of approximately 395 MWp. The assets are located in Maharashtra, Tamil Nadu, Uttar Pradesh, Gujarat and Rajasthan. In addition, subject to applicable approvals, VRET is in advanced discussions to acquire 55 MWp portfolio from Focal Energy.

The company had earlier said it will expand its portfolio by identifying investment opportunities that have stable cash flows stemming from long-term contracts with state and central government counterparties across India.

Hardik Shah, Managing Director, KKR Infrastructure, said, “Virescent continues to be an important part of our infrastructure strategy in Asia Pacific and how we contribute purposefully to India’s ambitious targets in the renewables sector. Investing in VRET alongside AIMCo and other institutional investors will help us to capitalise on this huge market opportunity. We will continue to support Virescent and its management team in providing greater renewable energy solutions to communities across India.”

“VRET’s portfolio of operating renewable energy assets whose economics are underpinned by long-term power purchase agreements are well aligned with our clients’ investment objectives. We look forward to partnering with KKR and Virescent to further grow the platform and provide renewable energy solutions to India in the coming years.” said Ahmed Mubashir, director, Infrastructure & Renewable Resources at AIMCo.

Virescent Renewable Energy Trust was floated in February this year by Virescent Infrastructure, which was set up in 2020 and is backed by global investment firm KKR

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