India is a key part of KKR’s Asia infrastructure strategy.

Image: Encavis AG

US private equity investor KKR has followed up its India investment in Sterlite Power’s grid trust with a deal to acquire five solar energy assets from Mumbai-based infrastructure developer Shapoorji Pallonji Infrastructure Capital (SP Infra).

As per the agreement signed with SP Infra, KKR will acquire five solar energy assets from SP Infra—169 MWp in Maharashtra and 148 MWp in Tamil Nadu—for a sum of Rs 15.54 billion (approximately US$204 million). 

Last year, in its first infrastructure investment in Asia, KKR together with Singapore’s sovereign wealth fund GIC, invested Rs 10.84 billion (US$ 157 million) and Rs 9.80 billion (US$142 million), respectively, to collectively own 42% stake in power infrastructure investment trust IndiGrid (India Grid Trust or the InvIT). IndiGrid was set up by Sterlite Power to own inter-state power transmission assets in India.

Asia Pacific is a core focus for KKR’s global infrastructure strategy, and India is a key market for KKR in the region given its dynamism, the scale of investment opportunities and its crucial need for capital solutions. 

Speaking about SP Infra deal, David Luboff, Head of Asia Pacific Infrastructure at KKR said, “Given the growing demand across Asia Pacific for sustainable energy solutions, we also see this as a great example of how KKR can bring capital and expertise to assets to help meet the demand for infrastructure development. Looking ahead, we are excited to explore even more renewable energy opportunities in India and overseas.”

Sanjay Nayar, CEO of KKR India, added, “SP Infra and the Shapoorji Pallonji Group are recognized in India and worldwide for the high quality of their renewable energy projects. Given the government’s ambitious target of achieving 175 GW of renewable energy capacity by 2022, we believe this is an attractive time to invest in this portfolio and provide even greater solar energy solutions to communities across India.”

“This deal further demonstrates SP Infra’s continued track record of developing high-quality infrastructure assets in its chosen spaces, creating value for further growth in its businesses, and be the partner of choice for high-quality international investors like KKR,” said Mukundan Srinivasan, managing director of SP Infra.

The Shapoorji Pallonji Group, based in Mumbai, operates in over 70 countries with a global turnover of over US$5 billion. SP Infra is the infrastructure development arm with assets and businesses in the renewable and gas-based power, highways, port and terminals in India and overseas.

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This article originally appeared on pv-magazine-india.com and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine-india.com).

Photo: CNE El Salvador

The recent increase in emissions has been driven by the presence of relatively new countries in the market such as Germany, Japan or Denmark, the recovery of emissions in the United States and robust corporate and agency activity.

They have also appeared in the global market, incoming new sectors, including the liquid transport industry through large tankers, mining companies and airports. This presence has raised dissimilar opinions about the difference between green bonds and transitional bonds and what criteria and categories should be applied for each case.

This evolution responds primarily to the growing demand of investors who turn to the green bond market that continues to grow vigorously.

Indeed, as of November 30, 2019, green bond issues reached USD 247.6bn and the total accumulated issues since the market began in 2008 exceeded USD 800 billion. Other alternative registers, such as the accounting carried out by the Climate Bonds Initiative, exhibit similar emission levels, only slightly below that (USD 235.7 bn), also highlighting the strong presence of developed markets in the most recent issues.

In the region of Latin America and the Caribbean, an issue of the Colombian entity Autonomous Equity Securitization that specifies a first issuance in Colombian pesos of sustainability bonds worth USD41 million is worth noting. The proceeds of the emission will be used by the concessionaires to acquire buses that operate on compressed natural gas to circulate in four corridors of the Transmilenio fast transit bus (BRT) system. The vehicles to be purchased comply with the EURO VI emission standard.

Among many other recent issues, the Italian bank Intesa Sanpaolo, which returned to the market with a second issue of 750m euros (USD831m), will be dedicated to financing circular economy initiatives in different sectors, an incipient trend that will deepen in The near future among financial institutions.

This article originally appeared on pv-magazine-latam.com, and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine-latam.com ).