KKR’s Renewable Platform Virescent Plans ₹4.25 Billion InVIT Issue for its Solar Assets

Of the proceeds, ₹3.49 billion will be utilized for partial repayment of its outstanding loans of ₹9.34 billion


Virescent Infrastructure, a renewable energy platform of global investment company KKR, has filed a draft placement memorandum with the Securities and Exchange Board of India and the National Stock Exchange of India to list its infrastructure investment trust (InvIT) on the Stock Exchange.

The company expects to raise gross proceeds of ₹4.25 billion (~$57.12 million) through this listing for its solar assets in India. Of this, ₹3.49 billion (~$46.91 million) will be utilized for partial repayment/pre-payment of its outstanding loans of ₹9.34 billion (~$125.56 million).

It plans to set aside ₹195 million (~$2.62 million) from the proceeds to pay Sindicatum Captive Energy Singapore as a holdback amount subject to and upon completion of a particular milestone defined in the amendment cum supplement agreement signed by both parties. The remaining proceeds will be used for general corporate purposes. In May 2021, Virescent Renewable Energy Trust had acquired 76 MWdc (68 MWac) of solar projects from Singapore-based Sindicatum Renewable Energy.

In its draft placement memorandum, the company mentioned that it has 259 MWac of solar project capacity in operation across states like Gujarat, Tamil Nadu, Maharashtra, Uttar Pradesh, and Rajasthan. This is apart from the 68 MW solar projects acquired in May 2021.

The combined revenue from operations of the special purpose vehicles for these solar projects for the financial year ending March 31, 2021, was over ₹3.44 billion (~$47 million).

For the InvIT issue, Axis Capital acted as a lead manager, and Shardul Amarchand Managaldas & Co acted as a legal advisor.

Earlier in February 2021, the proposed Inv of ITVirescent Renewable Energy Trust received ‘AAA/Stable’ provisional rating for its bank loan facilities from CRISIL, an S&P company.

Last year, KKR launched Virescent Infrastructure to acquire renewable energy assets in India. Virescent, headquartered in Mumbai, is expected to expand its diversified portfolio of renewable energy assets facilitated by KKR’s infrastructure fund investments. 

Mercom had earlier reported that Shapoorji Pallonji Infrastructure Capital (SP Infra), a part of the Shapoorji Pallonji Group, and KKR signed an agreement under which the SP Infra is expected to sell five of its operational solar energy assets to KKR for ₹15.54 billion (~$204 million).

KKR together with Sterlite Power is also the sponsor of the Indian power sector’s first InvIT – IndiGrid, established to own and operate power transmission and renewable energy assets in India.


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