IndiGrid has announced the completion of the acquisition of a 100 per cent stake in two solar assets with a cumulative capacity of 100 MW from Madrid-based developer Fotowatio Renewable Ventures (FRV) at an enterprise value of Rs 6.6 billion.The acquired portfolio of 100 MW is fully operational andis located in the 400 MW Ananthapuramu Solar Park in Andhra Pradesh. It is signed under a 25-year power purchase agreement at a fixed tariffwith the Solar Energy Corporation of India.Notably, the region has high solar irradiation making it ideal for project development.
The transaction represents the first renewable energy acquisition by any Infrastructure Investment Trust (InVit) in the country. The advisors for the transaction were Cyril Amarchand and Mangaldas, PriceWater Coopers, and Mahindra Teqo while Greenstone Advisors acted as the sell-side advisor for FRV.The acquisition is set to befunded through a combination of debt, internal accruals, and recent rights issues. Following the acquisition, IndiGrid’s net debt or assets under management stands around 58 per cent. This is well below the 70 per centleverage thresholdset by the Security Exchange Board of India’s InvIT Regulations.
IndiGrid’s current asset portfolio includes 14 diversified power projects consisting of 40 transmission lines of 7,570 km, 11 substations with 13,550 MVA capacity, and 100 MW of solar projects across 18 states and one union territory.In 2017, FRV had raised $29 million in non-convertible debentures from the International Finance Corporation to fund the 100 MW solar projects in Andhra Pradesh.