Mahindra Group and Ontario Teachers’ Pension Plan Board have collectively sponsored India’s largest Infrastructure Investment Trust (InvIT) in renewable energy, named ‘Sustainable Energy Infra Trust’ (SEIT). With a major capital elevate of INR 1,365 crore (USD 165 million), the InvIT has debuted on the National Stock Exchange of India Limited, drawing important subscription from international and Indian traders, together with the Asian Infrastructure Investment Bank (AIIB), the corporate on Monday introduced via an trade submitting.
Operational belongings and development plans
SEIT, with a technology capability of round 1.54 GWp, holds operational renewable energy belongings initially seeded by Mahindra Susten. The capital infusion of RINR 897.8 Crore (USD 108 million) via an offer on the market of SEIT items will allow Mahindra Susten’s development and growth of a future pipeline of renewable energy belongings.
Strategic partnership and funding from stakeholders
Under their development technique, Mahindra Susten and SEIT have entered a Right Of First Offer (ROFO) association, in compliance with InvIT Regulations. Both Mahindra Group and Ontario Teachers’ had dedicated substantial investments of as much as INR 3,050 Crore (USD 368 million) and INR 3,550 Crore (USD 428 million), respectively, into Mahindra Susten and SEIT.
Dr. Anish Shah, Group CEO & MD, Mahindra Group, stated, “The Government of India has laid down bold targets to scale back the carbon depth of the nation’s economic system by 45% by the tip of the last decade and obtain net-zero carbon emissions by 2070. The itemizing of SEIT is a testomony to the Group’s skill to draw robust exterior traders. Mahindra Susten has bold plans to realize 5X development within the subsequent 5 years and will contribute to each the Groups’ and the nation’s inexperienced energy targets.”
Avinash Rao, CEO of the Investment Manager to SEIT, commented, “Renewable energy is a core sector for India with important development potential. The Government’s concentrate on renewable and sustainable energy makes the business very engaging for investments thereby enabling additional development of our portfolio. An InvIT as an instrument is investor pleasant and attracts important curiosity in working renewable energy and infrastructure investments in India.”