India's ReNew acquires Actis-backed Ostro
Indian renewable energy producer ReNew Power Ventures has acquired renewable energy platform Ostro Energy, providing an exit for its PE backer Actis Capital.
Financial details of the transaction were not disclosed, but according to a release Canada Pension Plan Investment Board (CPPIB) will invest $247 million in ReNew to support the acquisition. The deal brings CPPIB’s total investment in ReNew to $391 million, following a $144 million commitment earlier this year that provided an exit for the Asian Development Bank (ADB).
Actis founded Ostro in 2015 with a $230 million investment, and seeded the platform with its first project, a 50 megawatt wind energy project in Rajasthan. It was the UK-based GP’s fifth energy platform worldwide and its first in India. Ostro now has a total planned capacity of more than 1,100 MW in wind and solar power assets, with nearly 850 already operational. The platform plans to have 1,000 MW of operational projects across India by next year.
ReNew was founded in 2011 and currently has more than 4,500 MW in projected capacity, of which 2,800 MW is currently operational. The acquisition of Ostro will bring ReNew’s combined portfolio to over 5,600 MW, including 3,600 MW of operational assets.
Goldman Sachs has provided substantial amounts of capital to ReNew: AVCJ Research shows the firm participating in four investment rounds since 2011. The Abu Dhabi Investment Authority (ADIA) has also backed the company, as have development finance institutions such as ADB and the Overseas Private Investment Corporation (OPIC), a US-government backed investor that committed $250 million in debt funding in 2016.
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