Mahindra Group and Ontario Teachers’ Pension Plan Board have collaborated to create an investment trust that focuses on renewable energy assets.
India’s largest investment trust in the renewable energy sector, Sustainable Energy Infra Trust (SEIT), recently debuted on the National Stock Exchange. The trust has raised ₹1,365 crore ($165 million) in primary capital through its initial offer of units.
The offer was subscribed by global and Indian investors, including Asian Infrastructure Investment Bank (AIIB).
SEIT holds operational renewable power assets seeded by Mahindra Susten with a generation capacity of approximately 1.54 GWp. The capital of ₹897.8 crore ($108 million) made available by way of an offer for sale of units of SEIT. They have entered into a right of first offer (ROFO) arrangement, where Mahindra Susten will offer their renewable energy assets for sale to SEIT as part of their growth strategy and in accordance with InvIT regulations.
Both Mahindra Group and Ontario Teachers’ have pledged to invest a maximum of ₹3,050 crore ($368 million) and ₹3,550 crore ($428 million) respectively in SEIT. Kotak Capital, Axis Capital and Avendus Capital were placement agents for the deal.
Reference- Reuters, Business Standard, Money Control, Economic Times, Mercom India