KKR-Backed India Solar Yieldco Raises $290 Million

Private equity firm KKR-backed renewable energy infrastructure investment trust has raised $290 million worth of debt funding from multiple sources. 

Virescent Renewable Energy Trust announced that it raised Rs 21.5 billion ($290 million) through a combination of non-convertible debentures (NCD), long-term and working capital financing.

Around $134 million was secured through sale of debt papers (NCDs) of varying tenure (3 to 7 years). Another $134 million was raised in the form of long-term debt from L&T Finance. Around $22 million was raised as working capital from Tata Capital. Proceeds from this fund raising exercise shall be used to refinance existing debt and fund future acquisitions. 

Virescent is India’s only renewable energy infrastructure investment trust, better known as a yieldco. It has around 394 megawatts of solar power projects in its portfolio with projects located in the states of Rajasthan, Gujarat, Uttar Pradesh, Tamil Nadu, and Maharashtra. In February 2021, it was floated privately as India’s first power generation yieldco. 

In September 2021, it secured an investment worth Rs 4.6 billion ($62 million) from Alberta Investment Management Corporation. 

The company plans to increase its portfolio to 2 gigawatts by March 2024.  The company expects 6-8 gigawatts of renewable energy capacity up for offer over the next few months.