Virescent Renewable Energy Trust Acquires Godawari Green Energy for ₹6.65 Billion

Virescent Renewable Energy Trust (VRET), a renewable energy infrastructure investment trust by Virescent Infrastructure, has signed a share purchase agreement to acquire 100% shareholding and management control in Godawari Green Energy Limited for ₹6.65 billion (~$98.11 million).

Godawari Green Energy, incorporated in July 2009, operates a 50 MW concentrated solar power project (parabolic trough) in the Nokh village, located in Jaisalmer district, Rajasthan. It entered into a 25-year power purchase agreement with NTPC Vidyut Vyapar Nigam Limited in January 2011 at a fixed tariff of ₹12.20 (~$0.16)/kWh. The project was commissioned in June 2013.

Godawari Green is a subsidiary of Godawari Power & Ispat Limited.

The company’s total revenue stood at ₹953.9 million (~$12.78 million) in the financial year (FY) 2018-19, ₹1.01 billion (~$13.53 million) in FY 2019-20, and ₹1.15 billion (~$15.41 million) in FY 2020-21.

Virescent Renewable Energy Trust said, “The acquisition of the aforesaid solar asset is in line with the VRET investment strategy as provided in the Trust Deed with a focus to ensure stable distribution to unitholders by owning assets with long-term contracts.”

Earlier this month, the infrastructure investment trust raised ₹6.5 billion (~$87 million) through domestic bond issuance across 7.33-year (₹1.5 billion (₹20 million)) and 10-year (₹5 billion (~$67 million)) tranches. The average quarterly coupon of the bonds is 7.93%, fully fixed for the entire tenor.

The trust is expected to use the bond proceeds to fund its immediate acquisition-related debt requirements while expanding its portfolio from the existing 450 MW of operational solar projects.

In December 2021, VRET announced that it had acquired a 49 MW solar portfolio from five special purpose vehicles (SPVs) of Focal Energy for ₹3.54 billion (~$46.73 million).

Mercom had earlier reported that Virescent Renewable Energy Trust raised a total of ₹21.5 billion through listed non-convertible debentures and long-term debt financing. The proceeds would be used to refinance its existing debt at the SPV level and fund future acquisitions.

According to Mercom’s Annual and Q4 2021 Solar Funding and M&A Report, there were 280 large-scale solar project acquisitions in 2021 compared to 231 transactions in 2020. In 2021, the sector also saw the most project acquisition activity in terms of gigawatts, with more than 69 GW changing hands compared to 40 GW in 2020.