Virescent Infrastructure, an Indian renewable energy platform sponsored by global investment firm KKR, has setup India’s first renewable energy infrastructure investment trust (RE-InvIT), Virescent Renewable Energy Trust (“VRET”).
VRET has raised Rs.460 crore ($62 million) from a group of foreign and domestic investors. Leading the transaction, on behalf of its clients, is Alberta Investment Management Corporation (“AIMCo”), one of Canada’s largest institutional investment managers.
KKR set up Virescent in October 2020 to acquire operating renewable energy assets in India. This comes at a time where renewables is set to play an increasingly critical role in powering India’s energy needs and estimated to make up 60 per cent of India’s installed power capacity by 2030. KKR invests in VRET from its Asia Pacific Infrastructure Investors Fund.
VRET’s initial portfolio comprises of nine operational solar projects with an aggregate capacity of approximately 395 MWp. The assets are located in Maharashtra, Tamil Nadu, Uttar Pradesh, Gujarat and Rajasthan. In addition, subject to applicable approvals, VRET is in advanced discussions to acquire 55MWp portfolio from Focal Energy.
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Hardik Shah, Managing Director, KKR Infrastructure, said, “Virescent continues to be an important part of our infrastructure strategy in Asia Pacific and how we contribute purposefully to India’s ambitious targets in the renewables sector. Investing in VRET alongside AIMCo and other institutional investors will help us to capitalize on this huge market opportunity. We will continue to support Virescent and its management teamin providing greater renewable energy solutions to communities across India.”
(Featured photograph for illustration only)
