IndiGrid Raises ₹11.4 Billion from IFC Through Debenture Issue
The company intends to use the money to fund its refinancing needs for 2024
IndiGrid, which is the first power sector Infrastructure Investment Trust (InvIT) to be listed on the stock exchange in India, has announced that the International Finance Corporation (IFC) has invested ₹11.4 billion (~$138.74 million) in its listed non-convertible debentures (NCD).
These NCDs have a total duration of 18 years and were issued at a competitive fixed rate for the long term.
IndiGrid intends to use this debt to fund its refinancing needs for the fiscal year 2024.
Harsh Shah, CEO of IndiGrid, said, “IFC is one of the most reputed multilateral institutions worldwide. We are delighted to welcome them as investors to our NCDs. This long-term financing from IFC aligns with IndiGrid’s strategy to ensure a robust balance sheet. This partnership also solidifies the commitment of IndiGrid to maintain the highest standards of governance and sustainability practices.”
Isabel Chatterton, IFC’s Regional Industry Director for Infrastructure, Asia and the Pacific, commented, “IFC’s investment in IndiGrid underlines our joint commitment to modernize and build a robust and reliable transmission system in India. Our support will help expand and diversify capital sources for critical power infrastructure, demonstrating the viability of innovative market financing to meet sustainable development goals. We aim to improve access to reliable power for millions of people across the country, ensuring sustained energy access for years to come.”
IndiGrid, which is backed by KKR, is India’s first yield platform in the power sector. The company owns 17 power projects, consisting of 46 transmission lines with more than ~8,416 circuit kilometers in length, 13 substations with ~17,550 MVA transformation capacity, and 100 MW of solar generation capacity. It has assets under management of over ~₹227 billion (~$2.7 billion).
In January this year, the company’s profit jumped 27% year-over-year to ₹1.19 billion (~$14.48 million) in the third quarter of the financial year 2023.
The company also recently executed a share purchase agreement for 100% equity interest in Khargone Transmission (KTL) with Sterlite Power Transmission for ₹14.98 billion (~$183.66 million).
In December last year, REC Power Development and Consultancy, a 100% subsidiary of REC Limited, handed over the project-specific special purpose vehicle (SPV) —Kallam Transmission Limited— to IndiGrid 1 Limited and IndiGrid 2 Limited’s consortium. The SPV was formed to construct the transmission project for power evacuation from 1 GW renewable projects in Osmanabad, Maharashtra.