Greenko Group Plc has signed an agreement GIC for selling its stake in Greenko Mauritius for around Rs 1,650 crore.
"Fitch believes GIC's move will improve Greenko's access to banking and capital markets. We also believe GIC will drive tighter risk management practices and financial policies at Greenko," the ratings agency said in a statement.
"We expect Greenko to remain an important entity for GIC to tap renewable power generation opportunities in India," it said, adding that GIC's plan to acquire all the shares that it does not own in Greenko Mauritius (Greenko) is beneficial for Greenko's profile.
Greenko operates clean energy projects in India. The group is building a portfolio of wind, hydropower, natural gas and biomass assets within India.
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"We expect GIC to be a long-term investor in Greenko, but our assessment also takes into account GIC's large assets under management and its value-driven investment philosophy as a sovereign wealth fund."
Greenko Dutch B.V. Used the note proceeds to invest in Indian rupee-denominated bonds issued by some of the operating entities that have a combined generation capacity of 619 MW.