India Grid Trust (IndiGrid) has announced that International Finance Corporation (IFC) has subscribed to a listed NCD issuance of IndiGrid, aggregating Rs.1,140 crore.
With a total tenure of 18 years, the NCDs were priced at a competitive rate that is fixed for a long tenure. IndiGrid plans to utilize this debt for funding its upcoming refinancing opportunities in FY24, a statement from IndiGrid said.
Highest standards of governance
Commenting on the agreement, Harsh Shah, Chief Executive Officer of IndiGrid, said,” IFC is one of the most reputed multilateral institutions across the world. We are extremely delighted to welcome them as investors to our NCDs. This long-term financing from IFC is in alignment with IndiGrid’s strategy aimed at ensuring a robust balance sheet. This partnership also solidifies the commitment of IndiGrid to maintain the highest standards of governance and sustainability practices.”
Committed to India’s power transmission
According to Isabel Chatterton, IFC’s Regional Industry Director for Infrastructure Asia and the Pacific, said, “IFC’s investment in IndiGrid underlines our joint commitment to modernize and build a robust and reliable transmission system in India. Our support will help expand and diversify capital sources for critical power infrastructure, demonstrating the viability of innovative market financing to meet sustainable development goals. We aim to improve access to reliable power for millions of people across the country, ensuring sustained energy access for years to come.”
Also read: All-India Grid Frequency Profile Improves In August 2021
IndiGrid portfolio
IndiGrid is the first Infrastructure Investment Trust (“InvIT”) in the Indian power sector. It owns 17 power projects, consisting of 46 transmission lines with more than 8,416 km in length, 13 substations with 17,550 MVA transformation capacity, and 100 MW (AC) of solar generation capacity. IndiGrid has assets under management (AUM) of over Rs.227 billion. The investment manager of IndiGrid is wholly owned by KKR.
The featured photograph (source: IndiGrid) shows a transmission asset in IndiGrid’s portfolio.
