KKR signs agreement to buy 317 MWp of Indian solar projects

KKR and Shapoorji Pallonji Infrastructure Capital (SP Infra) have signed definitive agreements under which KKR will acquire five solar energy assets from SP Infra for a total consideration of INR15.54 billion (approximately US$204 million). The portfolio comprises of assets with a capacity of 169 MWp in Maharashtra and assets with a capacity of 148 MWp in Tamil Nadu.

David Luboff, Head of Asia Pacific Infrastructure at KKR, said, “We are truly pleased to extend our Infrastructure franchise in Asia and India through this investment in a world-class portfolio of fully operational solar energy projects. 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.”

KKR takes a flexible approach to Infrastructure investment in the Asia Pacific. The firm has evolved a traditional sector-based approach to Infrastructure – spanning assets such as transportation, energy, telecom, water, and waste, among other segments – to further consider elements such as physical assets, proximity to the local economy, irreplaceability, sensitivities to economic cycles and governance, among other categories.

Further details of the investment have not been disclosed. The transactions are subject to customary approvals. KKR makes its investment through its infrastructure fund.

EY acted as KKR’s M&A advisor and AZB & Partners and Simpson Thacher acted as KKR’s legal advisors. Edelweiss, Khaitan & Co. and PwC acted as SP Infra’s respective M&A, legal, and tax advisors.