IDFC agrees partial exit from India’s Green Infra

Green Infra is one of the country's largest renewable energy groups with 665 megawatts of wind capacity in operation and under development, and a further 35 MW of solar assets. The projects are located in six resource-rich states in southern, western and central India.

The acquisition will see Sembcorp Utilities' global renewable energy portfolio triple in size to more than 1,000 MW. It will also extend the company's current portfolio of wind, biomass and energy-from-waste projects.

The selling shareholders are IDFC Private Equity Fund II and IDFC Private Equity Fund III, which incubated the asset from 2008. The latter fund will continue to hold a 40% interest in Green Infra. Fund II is expected to make a 2.2x return on its investment, while Fund III has a secured path to exit, with an IPO one of the options under consideration.

According to The Economic Times, UK development finance institution CDC and Piramal Group - both of which invested in Green Infra through convertible debt - will exit their holdings as well.

"This acquisition will provide Sembcorp with a platform to grow our renewable energy business. Green Infra's strong capabilities and experienced team will help to accelerate our growth in the renewable energy sector not only in India, but globally," said Tang Kin Fei, Sembcorp's group president and CEO, said in a statement.

Sembcorp Utilities is a wholly-owned subsidiary of Singapore-listed Sembcorp Industries. The parent company has 7,200 MW of power assets globally and a daily capacity of over 8 million cubic meters of water assets in operation or under development.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Exits
• South Asia
• Infrastructure
• Cleantech
• Infrastructure
• Cleantech
• India
• Exit
• Trade sale
• IDFC Private Equity