Virescent Renewable Energy Trust (VRET), a renewable energy infrastructure investment trust (InvIt) from KKR’s Virescent Infrastructure, has raised ₹4.6 billion (~$62 million) from foreign and domestic investors. Alberta Investment Management Corporation (AIMCo), a Canada-based institutional investment manager, led the funding round.
In October 2020, KKR, a global investment firm, launchedVirescent Infrastructure to acquire renewable energy assets in India. VRET’s initial portfolio includes nine operational solar projects with a total capacity of 395 MW. The projects are located in Maharashtra, Gujarat, Tamil Nadu, Rajasthan, and Uttar Pradesh.
The company is also in talks with Focal Energy to acquire a 55 MW portfolio. In May, it acquired 76 MW of solar projects from Singapore-based Sindicatum Renewable Energy.
VRET said it had been assigned a ”AAA/Stable’ rating for its loan facilities from CRISIL, India Ratings, S&P, and Fitch’s India affiliates. The ratings reinforced its healthy cash flow prospects owing to long-term power purchase agreements at pre-determined tariffs. The ratings also considered that the portfolio of VRET would grow up to 2 GW over the next two or three years.
Sanjay Grewal, Chief Executive Officer of Virescent Infrastructure, said, “VRET is India’s first renewable energy-focused InvIT and one of the few entities in the infrastructure sector to get the highest ”AAA” rating from two rating agencies. We look forward to drawing on the global investment management expertise of our investors as we continue to acquire high-quality assets for achieving our initial growth targets.”
Ahmed Mubashir, Director, Infrastructure, and Renewable Resources at AIMCo, said, “AIMCo is excited to expand its geographic footprint in Asia through its investment in India’s first renewable energy InvIT. VRET’s portfolio of operating renewable energy assets whose economics are underpinned by long-term power purchase agreements are well aligned with our client’s investment objectives. We look forward to partnering with KKR and Virescent to further grow the platform and provide renewable energy solutions to India in the coming years.”
In July,Virescent Infrastructure filed a draft placement memorandum with the Securities and Exchange Board of India and the National Stock Exchange to list its infrastructure investment trust.