Virescent Infrastructure Raises Rs 4.6 Bn in India’s 1st RE InvIT from AIMCo and Other Investors

Virescent Infrastructure, a leading Indian renewable energy platform sponsored by global investment firm KKR, has set up India’s first renewable energy infrastructure investment trust, Virescent Renewable Energy Trust.

VRET has raised INR4.6 billion (US$62 million) from a group of foreign and domestic investors. Leading the transaction, on behalf of its clients, is Alberta Investment Management Corporation one of Canada’s largest institutional investment managers.

KKR set up Virescent in October 2020 to acquire operating renewable energy assets in India. This comes at a time where renewables is set to play an increasingly critical role in powering India’s energy needs and estimated to make up 60% of India’s installed power capacity by 2030.

KKR invests in VRET from its Asia Pacific Infrastructure Investors Fund.

Sanjay Grewal, CEO, Virescent Infrastructure, said, “This incredible achievement is an important milestone in Virescent’s journey. VRET is India’s first renewable energy focused InvIT and one of the few entities in the infrastructure sector to get the highest ‘AAA’ rating from two rating agencies, CRISIL and India Ratings.

Hardik Shah, Managing Director, KKR Infrastructure, said, “Virescent continues to be an important part of our infrastructure strategy in Asia Pacific and how we contribute purposefully to India’s ambitious targets in the renewables sector. Investing in VRET alongside AIMCo and other institutional investors will help us to capitalise on this huge market opportunity.

Ahmed Mubashir, Director, Infrastructure & Renewable Resources at AIMCo, said, “AIMCo is excited to expand its geographic footprint in Asia through its investment in India’s first renewable energy InvIT. VRET’s portfolio of operating renewable energy assets whose economics are underpinned by long-term power purchase agreements are well aligned with our clients’ investment objectives. We look forward to partnering with KKR and Virescent to further grow the platform and provide renewable energy solutions to India in the coming years.”