CDC, IDFC co-invest in India's Green Infra

IDFC invested the INR1.5 billion ($23.89 million) from IDFC PE Fund III in this round. The GP had earlier invested approximately INR3 billion in the company from the same fund, according to Raja Parthasarathy, managing director at IDFC Alternatves.

Green Infra was set up in April 2008 with capital from IDFC's PE Fund II and Fund III.

It will use the capital to expand its wind and solar power generation capacity through a combination of organic growth and acquisitions. The company acquired a 90.46% stake in TVS Energy in August and has a generating capacity of 387 megawatts across 18 assets in six Indian states. It is working to reach a targeted capacity of 1,000 MW of wind and solar energy generating assets by 2016.

In April, Green Infra raised nearly INR5 billion from Piramal Enterprises to fund its projects and expansion plans. The structured transaction is for a tenor of 5 years with an investor put at the end of the term.

CDC said last year that it plans to commit $1 billion to India over the next 4-5 years, with nearly half of it coming through direct investment. The projection is in line with a wider adjustment in CDC's mandate that will see it focus exclusively on South Asia and Africa and also return to direct investment after eight years spent operating on a fund-of-funds basis.

India's infrastructure sector - and the power sector in particular - is in urgent need of large-scale investment, acknowledged by the Indian government's commitment to add 88,000 MW of generating capacity by 2018. Wind power is seen as a sustainable way to address the deficit, due to its clean credentials, short execution cycle and competitive cost relative to traditional power generation.

IDFC's Green Infra is one of a number of PE-backed renewable power producers operating in India. Goldman Sachs, Morgan Stanley Infrastructure Partners, TPG Growth and GIC Private also have investments in the sector.

 

 

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• Topics
• South Asia
• Infrastructure
• Infrastructure
• Expansion
• India
• IDFC Private Equity
• CDC Group
• Infrastructure
• Growth capital