Edelweiss Infrastructure acquires 74% stake in Engie’s India solar assets

The Mumbai-based investor has concluded acquiring a controlling stake in Engie’s 813 MWp operating solar capacity in India. It will also acquire 2 GW of solar assets to be developed by the French energy major over the next couple of years.

March 26, 2021 Uma Gupta

Engie's big solar portfolio in India has enabled it to attract VIPs such as Emmanuel Macron and Narendra Modi to its official openings.

Image: Press Information Bureau, GoI

Edelweiss Infrastructure Yield Plus (EIYP), an alternative investment fund (AIF) managed by Edelweiss Group, has concluded the acquisition of a controlling stake (74%) in French energy major Engie’s 813 MWp of operating solar capacity in India.

Engie plans to develop 2 GW of solar assets in India over the next couple of years, which, once commissioned, will also be acquired by EIYP as per the agreed terms.

The transaction for 813 MWp will enable the French fossil fuel company to reduce net debt by more than €400 million, Engie announced last year, without revealing the transaction’s exact price.

Engie’s ‘develop, build, share, and operate’ strategy involves selling part of its stake in renewables assets while carrying out operations and maintenance.

“This partnership between EIYP and Engie is aimed at creating a high-quality solar platform of substantial scale with a plan to add 2 GW solar assets over the next couple of years. These assets developed by Engie will be acquired by EIYP post-commissioning as per agreement between the two companies,” read an EIYP statement.

The investment was carried out by EIYP’s energy-focused platform Sekura Energy that focuses on investing, acquiring and operating assets in the Indian energy sector.

EIYP is the largest yield-focused infrastructure AIF in India and the only platform owning and operating assets in all three large infrastructure sectors—transmission, solar energy and highways.

The latest investment is in line with its strategy to generate regular yield and create value for its investors by taking a controlling stake in quality operating infrastructure assets with strong cash flows.

“Acquiring operating infrastructure assets helps developers to unlock capital and de-lever, enabling them to take on newer and larger opportunities. As India transitions to clean energy, this model will be the core to the country’s ambitious renewable capacity expansion program”, said Hemant Daga, chief executive officer, Edelweiss Asset Management.

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