KKR arm floats InvIT for green energy

KKR arm floats InvIT for green energy

KKR-backed renewable energy firm Virescent Infrastructure has floated India's 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.

The KKR arm has sought approval from the Securities and Exchange Board of India (Sebi) for the private InvIT. KKR is also in the process of acquiring a portfolio of operational solar assets of about 76 MWp (megawatt-peak) at different locations, including Mohaba (Uttar Pradesh), Jodhpur (Rajasthan), and Patan (Gujarat). The power purchase agreements (PPAs) for these assets are with state-owned counterparties. The assets will be vested in the InvIT.

Credit Rating Information Services of India Limited (CRISIL) has assigned a provisional 'AAA/stable' rating for the bank loan facilities of Virescent Renewable Energy Trust (VRET). "AAA/Stable" rating is the highest provisional rating that CRISIL assigns.

Make in Steel 2021

24 February 

Click for event info

4th Indian Cement Review Conference 2021

17-18 March 

Click for event info

One of the reasons for the good ratings is healthy revenue visibility due to long term PPAs at predetermined tariffs. Additionally, its track record of enhanced generation capabilities, healthy financial risk profile, and expectation of low leverage added to its profile, the company said.

The portfolio will continue to have a major focus on solar energy assets, with solar assets estimated to comprise approximately 80-90% of VRET's portfolio, diversified in terms of location and participating counterparties.

As we have reported, Finance Minister Nirmala Sitharaman in the Budget 2021-22 allowed tax exemption on debt financing of InvITs by foreign portfolio investors.

Headquartered in Mumbai, KKR's renewable energy platform Virescent plans to expand its portfolio of operational renewable energy assets by identifying investment opportunities which have stable cash flows stemming from long-term contracts with state and central government counterparties across India.

Image: The InvIT aims to achieve approximately 1.5 GW assets in the next two to three years.

Also read: An Infra-Nirbhar Budget

Related Stories

Hi There!

Now get regular updates from CW Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Construction News on Whatsapp! Enjoy

+91 86575 81178