Brookfield, CPPIB, NIIF sprinting to buy Mahindra's 600MW solar assets By CIOReview India Team

Brookfield, CPPIB, NIIF sprinting to buy Mahindra's 600MW solar assets

CIOReview India Team | Monday, 19 October 2020, 04:25 IST

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Brookfield, CPPIB, NIIF in race to buy Mahindra’s 600MW solar assetsBrookfield, Canada Pension Plan Investment Board (CPPIB), National Investment and Infrastructure Fund (NIIF) and Edelweiss Yield Plus Infrastructure Fund are among half a dozen investors in discussions to acquire almost 600 megawatts (MW) of solar assets from Mahindra group’s renewable energy business, Mahindra Susten, said two representatives aware of the development.
 
“They have received offers from six financial investors including Brookfield, Edelweiss, CPPIB and NIIF. They will be shortlisting three bidders for the final round of negotiations," said the first person. The portfolio of assets on sale includes two large operating solar projects: a 250MW project in Rewa, Madhya Pradesh, and another 250MW project that it won in Solar Energy Corp. of India and a few smaller projects, the second person added.
 
On the record, this will be the second sale of operating solar assets by Mahindra Susten. Earlier this year, Mahindra Susten sold around 160MW of solar projects to CLP India. Mahindra Susten has a portfolio of 1,569MW.
 
Mahindra Susten’s renewable energy assets are among a plethora of ongoing large portfolio sales in the infrastructure space, while financial investors continue to remain bullish on the sector’s prospects. A news portal reported in July that private equity investors KKR and Actis are in talks to acquire a 435MW solar portfolio from Azure Power Global Ltd, which is backed by Canadian institutional investor Caisse de dépôt et placement du Québec (CDPQ). Saudi Arabia’s Alfanar Group is also eyeing to sell half its 600MW wind power projects in India. A few others making appriaches to selling renewable projects include Finland’s state-controlled power utility Fortum Oyj. This firm is also seeking for buyers for its 500MW solar projects in India.
 
Besides financial investors, foreign strategic investors have also shown enthusiasm in investing large capitals in established renewable platforms in India.
 
In September, Japan’ financial services firm ORIX Corp. had said that it is investing $980 million in GIC Holdings Pte. Ltd and Abu Dhabi Investment Authority-backed Greenko Energy Holdings, in the single largest foreign investment in India’s clean energy space. Thailand’s state-owned energy giant PTT Group has been in talks with Goldman Sachs Group to buy a stake in ReNew Power Pvt. Ltd, one of the largest renewable energy producers in the country, as reported by another news agency.

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