Edelweiss Closes Energy InvIT Worth ₹23 Billion, to Invest in Renewables

The trust currently holds assets with an aggregate generation capacity of ~813 MW


Edelweiss Real Assets Managers, part of Edelweiss Alternatives, an India-based alternative asset advisor, has closed its maiden energy infrastructure investment trust (InvIT) – AnZen India Energy Yield Plus Trust, with an initial asset under management of over ₹23 billion (~$283.03 million).

The AnZen Trust, a diversified and growth-oriented trust, focuses on high-quality energy assets.

The proceeds are expected to be used towards a diversified portfolio of energy assets, including renewable energy projects and transmission lines, providing its investors with a long-term, predictable yield and growth.

The funds for the trust were raised through private placement and received an encouraging response from a diversified set of institutional and eligible investors who hold approximately 26% of the units.

AnZen Trust has acquired two operating inter-state transmission assets in Punjab, Haryana, and Bihar. These assets have a residual transmission service agreement period of over 30 years under the point of connection mechanism, which the Power Grid Corporation of India manages.

It also has the right of the first offer on the shareholding of its sponsor/affiliates in 12 solar energy assets with an aggregate generation capacity of approximately 813 MW. In March 2021, Edelweiss Infrastructure Yield Plus, an alternative investment fund managed by Edelweiss Alternative Asset Advisors and Sekura Energy, acquired a 74% stake in the 813 MW solar portfolio of Engie in India. These assets will be developed by Engie and acquired by EIYP post-commissioning.

Sekura Energy is the sponsor of Anzen Trust, and Edelweiss Real Assets Managers is the Investment Manager.

Ranjita Deo, CIO AnZen Trust, said, “Infrastructure Investment Trusts are a compelling investment alternative for investors looking for predictable yields and sustainable appreciation through growth. AnZen Trust intends to provide diversified exposure to the energy sector in India, which has seen impressive growth over the years. Portfolio diversity presents a better growth opportunity for AnZen Trust and a well-diversified de-risked strategy for investors.”

Early this year, solar cell manufacturer Jupiter International raised ₹1.7 billion (~$20.92 million) from funds managed by Edelweiss Alternative Asset Advisors, including debt and a convertible to an equity instrument.