KKR investment trust in talks to buy FRV solar assets in India

21 September 2020 (Last Updated September 24th, 2020 12:22)

India Grid Trust has reportedly entered advanced talks to acquire Fotowatio Renewable Ventures’ (FRV's) Indian renewable portfolio for $101m (Rs7.5bn).

KKR investment trust in talks to buy FRV solar assets in India
FRV owns 135MW of solar generation in Andhra Pradesh, and looks to expand. Credit: Anders Jacobsen on Unsplash.

India Grid Trust has reportedly entered advanced talks to acquire Fotowatio Renewable Ventures’ (FRV’s) Indian renewable portfolio for $101m (Rs7.5bn).

The Economic Times reported that FRV started discussions w­­­­ith multiple investors including Hero Future Energies, EverSource and Edelweiss. The company plans to sell its Indian assets, but has failed to do so thus far.

Owned by Saudi Arabia’s Abdul Latif Jameel Energy and Environmental Services, FRV owns a 135MW solar power project in the Indian state Andhra Pradesh.

India Grid Trust, an Infrastructure Investment Trust of investment company KKR, declined to comment on the deal, along with FRV.

Since 2019, KKR has invested significantly in Indian markets. As part of this, the company partnered with Infra Holdings to manage the infrastructure investment trust of Sterlite Power Transmission – India Grid Trust.

Under this deal, KKR invested $147m (Rs10.84bn) and India’s General Insurance Corp. invested $133m (Rs9.8bn).

Currently, India Grid has acquired five transmission projects from its sponsor Sterlite Power Ventures for $1.65bn (Rs115.3bn).

In April this year, KKR signed a definitive agreement with Indian infrastructure developer Shapoorji Pallonji Infrastructure Capital to acquire its five solar energy assets, for a total consideration of $204m (Rs15.54bn).

The 317MW solar portfolio includes 169MW capacity of assets in the Indian state of Maharashtra. The remaining 148MW of assets lie in the state of Tamil Nadu. The investment is expected to fast-track the provision of renewable energy solutions to local communities.