Brookfield, Macquarie, KKR in Race for IL&FS Green Assets
Mumbai: Global Infra Partners, KKR, Brookfield, I Squared Capital and Macquarie are among the 15 large funds in the race for buying over 1,000-megawatt renewable energy assets of Infrastructure Leasing & Financial Services Ltd (IL&FS).
The proposed sale of the stake held by the IL&FS Group in these assets and businesses is likely to garner ₹ 6,000-8,000 crore.
IL&FS had called bids for the asset management services unit of the wind power plants and the business division that develops and implements these projects. This includes a controlling stake in wind power plants with an aggregate capacity of 873.5 MW as well as those under construction with a combined capacity of 104 MW. Solar power plants and projects under development of about 300 MW capacity are also up for grabs.
The newly-constituted IL&FS board called for expressions of interest to assess the interest in its stake in the renewable energy assets in November 2018. The stake sale in subsidiaries is part of the company’s resolution plans.
Burdened under a ₹ 91,000-crore debt load, the infrastructure finance company had approached the National Company Law Tribunal (NCLT) to resolve the issue with creditors without going in for liquidation. IL&FS has been looking to sell stakes in subsidiaries to monetise and pare its debt. It has also submitted a plan to NCLT, looking to cut non-essential expenses.
Arpwood Capital and JM Financial were appointed as financial and transaction advisors. Alvarez & Marsal is the resolution consultant. KKR, Macquarie and Brookfield said they would not like to comment for the story, while IL&FS corporate communications head Sharad Goel declined to comment.
India is expected to install 175 giga watt (GW) of renewable energy generation plants, including 60 GW of wind power by 2020.
The bidding activity in the renewable energy sector has remained sizeable with central nodal agencies like the Solar Energy Corporation of India and NTPC Limited (NTPC) as well as state distribution utilities issuing bids for wind and solar power capacities of about 10 GW and 15 GW during 2017 and 2018, Icra had said in a report.
“The wind and solar power projects remain highly cost-competitive against the conventional sources and would continue to increase their share in the generation mix over the next few years. As per Icra estimates, the share of renewable energy in the generation mix is expected to increase to 12-13% by FY22 from 7.7% in FY18,” said Sabyasachi Majumdar, group head for corporate ratings at ICRA.