Investment funds scramble to acquire Indian giant’s 1 GW assets

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Some 15 large investment funds – including Global Infra Partners, KKR, Brookfield, I Squared Capital and Macquarie – have joined the race to buy more than 1 GW worth of renewable energy assets that are being put up for sale by debt laden Mumbai concern Infrastructure Leasing & Financial Services (IL&FS) Ltd. The company hopes to raise Rs6,000-8,000 crore from the proposed sales, according to the Economic Times.

Livemint reported global infrastructure fund I Squared Capital will create a renewable assets platform in India to acquire and develop utility-scale projects. The investment house has already been present in the renewable space, through rooftop solar firm Amplus Energy Solutions. I Squared is said to be looking initially to acquire assets to build the platform and then set up a team to help it bid for and develop greenfield projects.

Indian state-owned power company NTPC, natural gas company GAIL India and the Solar Energy Corporation of India are among the domestic contenders also said to be keen to buy IL&FS renewables assets.

Clean energy projects part of fire sale

IL&FS has 300 MW of solar projects under construction and owns wind plants with a capacity of 873.5 MW plus further units under construction with a capacity of 104 MW.

The asset sales are key to reviving IL&FS, which had total debts of $12.6 billion at the end of March. The company has been defaulting on loans and bonds since August.

The newly-constituted IL&FS board called for expressions of interest to assess the demand for acquiring its stake in renewable energy assets in November. Partial sales of subsidiaries are also part of the company’s turnaround plans.

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