CDPQ to acquire additional 10 per cent stake in Apraava Energy

CLP, a chinese power company, has agreed to sell an additional 10 per cent share in India-based Apraava Energy to Canadian investment company Caisse de dépôt et placement du Québec (CDPQ) for Rs 6.6 billion. After purchasing a 40 per cent investment in Apraava Energy in 2018, CDPQ now has a 50 per cent stake in the independent power producer. According to the pension fund, the deal will make its governance rights in Apraava Energy equal to those of CLP, one of the largest foreign investors in India’s power sector.

The portfolio of Apraava Energy has a total installed capacity of 3.15 GW, which includes a 1.32 GW coal-fired power plant in Haryana and a 655 MW gas-fired power plant in Gujarat.  Along with a power transmission asset, the company also has 924 MW of wind and 250 MW of solar energy capacity spread across seven Indian states. Completion of the deal is subject to several conditions being met, including the receipt of approvals from the regulatory bodies.

In October 2020, CLP Group’s wind energy arm in India, CLP Wind Farms (India) raised Rs 2,960 million through the issuance of rated, secured, unlisted, redeemable and non-convertible debentures. The green bonds would be issued in two tranches of Rs 1,969 million and Rs 1,000 million. These are yearly-coupon bonds which have been assigned a rating of AA by India Ratings and Research Private Limited.

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