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Asset acquisition from Sterlite Power to boost IndiGrid’s AUM to
INR17,000 crores (US$2.5 billion)
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Transaction marks KKR’s first Infrastructure investment in Asia Pacific
MUMBAI–(BUSINESS WIRE)–
India Grid Trust (“IndiGrid” or the “InvIT”), India’s leading
infrastructure investment trust, today announced the closing of a
preference unit issuance worth INR2,514 crores (US$363 million). As part
of the transaction, KKR and GIC have invested INR 1084 crores (US$157
million) and INR 980 crores (US$142 million), respectively, to
collectively own 42% of IndiGrid’s outstanding units. KKR has also
applied to become a Sponsor of IndiGrid and plans to acquire an
additional 15% of IndiGrid’s total units from Sterlite Power. Following
the closing of the transactions, KKR and GIC will collectively own
approximately 57% of IndiGrid’s outstanding units.
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In a separate transaction, KKR will additionally acquire a majority
shareholding in Sterlite Investment Managers Limited, the investment
manager owned by Sterlite Power. Sterlite Power established IndiGrid in
2016 and will remain a Sponsor and Project Manager of IndiGrid.
With the capital infusion provided by the new unit issuance, IndiGrid
will purchase five electricity transmission assets worth INR11,500
crores (US$1.66 billion) from Sterlite Power. A share purchase agreement
for the two operational transmission assets — NRSS XXIX and OGPTL — has
been signed, while three additional assets will be purchased once they
become operational. IndiGrid is an infrastructure investment trust
established to own inter-state power transmission assets in India.
Following the completion of the proposed acquisitions, IndiGrid’s AUM
will rise to INR17,000 crores (US$2.5 billion).
The InvIT currently manages a portfolio of six electricity transmission
assets with a total network of power transmission lines that span more
than 3,361 circuit kilometers across nine Indian states. The purchase of
Sterlite Power’s electricity transmission assets will significantly
expand IndiGrid’s portfolio and better enable it to address India’s
infrastructure needs.
The transactions mark KKR’s first investment through its Asia Pacific
Infrastructure strategy. KKR makes the investment through a proprietary
investment vehicle. Each transaction is subject to customary closing
conditions, including regulatory and unitholder approvals.
Harsh Shah, CEO of IndiGrid, said, “We welcome KKR, GIC and our other
investors and who have showcased their confidence in IndiGrid, and we
look forward to benefiting from KKR and Sterlite Power’s expertise and
experience in investment and asset management. With this new capital
investment, we will reach our goal of INR17,000 crores of assets under
management and are well on our way to achieving INR 30,000 crores of
assets under management by 2022 while also providing stable and
predictable returns to our investors.”
David Luboff, Member & Head of Asia Pacific Infrastructure at KKR,
added, “Asia Pacific is a core focus for KKR’s global infrastructure
strategy, and India is a key market for us in the region given its
dynamism, the scale of investment opportunities and its crucial need for
capital solutions. We’re pleased to have chosen leading infrastructure
providers like IndiGrid and Sterlite Power as our first investment
behind our Asia Infrastructure strategy, and look forward to supporting
IndiGrid’s growth, providing further solutions-oriented opportunities
and playing an important role in addressing the infrastructure need.”
“India holds a tremendous opportunity for infrastructure investment, in
the trillions of dollars in the coming decades,” added Sanjay Nayar,
Member & CEO of KKR India. “We believe addressing the country’s
infrastructure needs is a priority for the government, industries and
communities across India alike, and we are excited to make our foray
into this market and contribute as a solutions provider. IndiGrid is a
well-managed infrastructure platform and Sterlite Power is a world-class
asset manager. We look forward to working together with these teams to
grow this platform and support infrastructure development in the coming
years.”
Pratik Agarwal, Group CEO of Sterlite Power, said, “Working with an
established global investor like KKR advances our mission of becoming
Asia’s leading infrastructure investment trust. We believe now is the
optimal time to invest in electricity transmission assets because the
global clean energy revolution has created unprecedented demand for new
transmission infrastructure. Our ability to grow the IndiGrid platform
comes at a valuable time, and this opportunity further enables Sterlite
Power to focus on its core skillset of developing greenfield assets in
India, Brazil and beyond.”
Edelweiss and EY are acting as Indigrid and KKR’s M&A advisors,
respectively. Cyril Amarchand Mangaldas serves as Indigrid’s legal
counsel and PWC and EY act as Indigrid’s Due Diligence and Tax advisors,
respectively. AZB & Partners and Simpson Thacher & Bartlett serve as
KKR’s legal counsel, with EY acting as accounting and tax advisor.
Khaitan & Co acts as Sterlite Power’s legal counsel.
****
About Sterlite Power
Sterlite Power is a leading global developer of power transmission
infrastructure with projects of over 12,500 circuit kms and 20,500 MVA
in India and Brazil. With an industry-leading portfolio of power
conductors, EHV cables and OPGW, Sterlite Power also offers solutions
for upgrading, uprating and strengthening existing networks. The Company
has set new benchmarks in the industry by use of cutting-edge
technologies and innovative financing. Sterlite Power is also the
sponsor of IndiGrid, India’s first power sector Infrastructure
Investment Trust (“InvIT”), listed on the BSE and NSE.
For more details, please visit www.sterlitepower.com
About IndiGrid
IndiGrid [BSE: 540565 | NSE: INDIGRID] is the first Infrastructure
Investment Trust (“InvIT”) in the Indian power sector. IndiGrid owns 6
operating projects consisting of 13 transmission lines with 3,361 ckms
length and 3 substations with 7,000 MVA transformation capacity.
For more details, please visit www.indigrid.co.in
About KKR
KKR is a leading global investment firm that manages multiple
alternative asset classes, including private equity, energy,
infrastructure, real estate and credit, with strategic partners that
manage hedge funds. KKR aims to generate attractive investment returns
for its fund investors by following a patient and disciplined investment
approach, employing world-class people, and driving growth and value
creation with KKR portfolio companies. KKR invests its own capital
alongside the capital it manages for fund investors and provides
financing solutions and investment opportunities through its capital
markets business. References to KKR’s investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and
on Twitter @KKR_Co.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190504005008/en/
For Sterlite Power
Balaji Krishnaswami +91-9971757474
Balaji.krishnaswami@sterlite.com
For IngiGrid
Investor.relations@indigrid.co.in
For KKR
KKR Asia
Anita Davis, +852 3602 7335
Anita.Davis@KKR.com
KKR Americas
Kristi Huller / Cara Major, +1 212-750-8300
Media@KKR.com
Edelman (For KKR India):
Siddharth Panicker, +91-9820-857-522
Siddharth.Panicker@Edelman.com
Source: KKR