Canada’s Alberta Investment Management Corporation (AIMCo) is among international investors to commit INR4.6bn (€53m) to India’s Virescent Renewable Energy Trust (VRET).
VRET, India’s first renewable energy infrastructure investment trust, was set up by Virescent Infrastructure, which is backed by KKR.
KKR established the Indian company in 2020 to acquire operating renewable energy assets in that country. KKR invests in VRET from its Asia-Pacific Infrastructure Investors Fund.
VRET’s initial portfolio comprises nine operational solar projects, with an aggregated capacity of approximately 395MWp. The assets are located in Maharashtra, Tamil Nadu, Uttar Pradesh, Gujarat and Rajasthan. The entity is in talks to acquire a 55MWp portfolio from Focal Energy.
Hardik Shah, managing director of KKR Infrastructure, said investing in VRET, alongside AIMCo and other institutional investors, would help Virescent capitalise on India’s potential, with the country aiming to have 60% of the country’s installed power capacity generated from renewable energy by 2030.
Ahmed Mubashir, infrastructure and renewable resources director at AIMCo, said the investment in VRET had expanded AIMCo’s geographic footprint in Asia.
“We look forward to partnering with KKR and Virescent to further grow the platform and provide renewable energy solutions to India in coming years,” said Mubashir.
VRET has been assigned an ‘AAA/Stable’ rating for its loan facilities by various domestic and international credit rating agencies.
Sanjay Grewal, CEO of Virescent Infrastructure, said the ‘AAA’ rating was based on an expectation that the vehicle’s portfolio would grow to up to 2 GWp over the next two to three years.
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