IndiGrid Acquires 100 MW Solar Assets of FRV in Rs 660 Crore Deal

IndiGrid has acquired the 100 MW Indian solar portfolio of Madrid-based Fotowatio Renewable Ventures (FRV), in a deal worth Rs 660 crore.

India Grid Trust (IndiGrid) has announced in a regulatory filing that it has acquired the 100 MW Indian solar portfolio of Madrid-based developer Fotowatio Renewable Ventures (FRV), in a deal worth Rs 660 crore.

The KKR-owned Infrastructure Investment Trust (InvIT) has announced that it has signed a securities purchase agreement for the acquisition of 100 percent shareholdings in two SPVs – FRV Andhra Pradesh Solar Farm-I & FRV India Solar Park II – from FRV Solar Holdings.

As per the release, FRV I was incorporated on July 14, 2016, and operates a 50 MW (AC) solar power plant in Ananthapuramu Solar Park in the state of Andhra Pradesh. FRV I had entered into PPA with SECI on October 5, 2016, for a period of 25 years. The asset was commissioned in July 2018. 

Similarly, FRV II was incorporated on July 09, 2016, and operates another 50 MW (AC) solar power plant in the Ananthapuramu Solar Park. This SPV had also entered into PPA with SECI on October 5, 2016, for tenor of 25 years. This asset, however, was commissioned in January 2019.

The completion of acquisition would depend upon receipt of relevant approvals and completion of contractual obligations.

In October, we had reported that Global investment firm KKR had launched – Virescent Infrastructure, a new platform to acquire renewable energy assets in India. Headquartered in Mumbai, Virescent aims to expand its diversified portfolio of operational renewable energy assets, facilitated by investments predominantly made through KKR’s infrastructure fund. 

It was stated that at the time Virescent owned 317 MWp of solar assets located in Maharashtra and Tamil Nadu. KKR has also entered into definitive agreements to acquire other operating solar projects across three different states. Once closed, these projects will also become part of the Virescent platform.

It was stated that the platform would look to identify investment opportunities that have stable cash flows stemming from long-term contracts with state and central government counter-parties across India.