KKR-sponsored Virescent InvIT raises USD62 million

Virescent Infrastructure, an Indian renewable energy platform sponsored by global investment firm KKR, has set up India’s first renewable energy infrastructure investment trust (InvIT), Virescent Renewable Energy Trust (VRET).

VRET has raised INR4.6 billion (US$62 million) from a group of foreign and domestic investors. Leading the transaction, on behalf of its clients, is Alberta Investment Management Corporation (AIMCo), one of Canada’s largest institutional investment managers.

KKR set up Virescent in October 2020 to acquire operating renewable energy assets in India. This comes at a time where renewables are set to play an increasingly critical role in powering India’s energy needs and are estimated to make up 60% of India’s installed power capacity by 2030. KKR invests in VRET from its Asia Pacific Infrastructure Investors Fund.

VRET’s initial portfolio comprises nine operational solar projects, with an aggregated capacity of approximately 395 MWp. The assets are located in Maharashtra, Tamil Nadu, Uttar Pradesh, Gujarat and Rajasthan. In addition, subject to applicable approvals, VRET is in advanced discussions to acquire a 55M Wp portfolio from Focal Energy.