KKR-Backed Renewables Platform Buys 76 MW of Solar Portfolio From Singapore Firm Sindicatum
Virescent Infrastructure, a renewable energy platform backed by global asset manager KKR & Co, has acquired the 76 megawatt (MW) India solar asset portfolio of Singapore-based Sindicatum Renewable Energy Company Pte Ltd.
VCCircle was the first report to last month that KKR was looking to buy the assets spread across Gujarat, Rajasthan and Madhya Pradesh.
“These assets have a mix of central government and Tier-I state government off-takers. The acquisition is in line with Virescent’s strategy to acquire operational renewable energy assets that have stable long-term cashflows with government counterparties across India,” Mumbai-based Virescent said.
The Singaporean company develops, owns and operates power generation facilities in South and Southeast Asia, and sells electricity to utilities and commercial customers.
The firm, as per its site, has four solar energy assets in India spread across Gujarat (two assets), Rajasthan (one asset) and Madhya Pradesh (one asset).
The Singaporean company has made several acquisitions in the country in the past. In 2019, it bought solar energy assets of Delhi-based Sukhbir Agro Energy Ltd having a total capacity of 50-60 MW.
In October 2018, it bought a 20 MW solar project of Zamil Infra Pvt Ltd. In 2015, Sindicatum acquired a 20 MW co-generation power plant in Maharashtra from Chennai-based Orient Green Power Company Ltd, a listed firm of the Shriram Group.
In 2012, Sindicatum acquired a 49% stake in a joint venture that housed co-generation power assets of Delhi-based sugar refinery Simbhaoli Sugars Ltd.
KKR’s renewables exposure
Virescent was launched in October last year. It owns 317 megawatt peak (MWp) of solar assets located in Maharashtra and Tamil Nadu.
Today, KKR’s global infrastructure portfolio spans sectors such as energy, transportation, telecom, oil and gas, and water. Renewable energy forms a key part of KKR’s infrastructure strategy, with the PE firm having invested in renewable energy businesses with more than 10,000 MW of total operational capacity.
Earlier this year, KKR closed its maiden Asian infrastructure fund hitting the hard cap at $3.9 billion (Rs 28,646 crore). The fund has a broad mandate to invest across emerging and developed countries in the Asia-Pacific in segments including renewables.
KKR has reportedly been vying for several renewables assets across the country. It is said to be in the race for 900 MW of power purchase agreements from Hero Future Energies.
Last year, KKR-backed IndiGrid, the country’s only publicly listed InvIT (infrastructure investment trust) in the power sector, said it had acquired two assets operated by FRV Solar Holdings.
In April last year, the PE giant bought five solar energy assets from Shapoorji Pallonji Infrastructure Capital for $204 million.
The renewables space has seen some large transactions, especially in the solar energy sector.
Last month, Radiance Renewables acquired solar rooftop assets of 152.5 MW capacity for Rs 536.5 crore.
In March 2021, Edelweiss Infrastructure Yield Plus concluded the acquisition of a controlling stake in the Indian solar energy assets of French utility Engie.
In December 2020, National Investment and Infrastructure Fund (NIIF), the country’s quasi-sovereign fund, led a $390 million funding round in Ayana Renewable Power.