French energy utility firm ENGIE has announced a strategic partnership with Edelweiss Infrastructure Yield Plus (EIYP) for solar assets in India in order to pare debt of around EUR 400 million (around Rs 3,159 crore).
"In line with both ENGIE's and EIYP's strategies, ENGIE has agreed to sell (once the transaction has closed in accordance with its terms) a 74 per cent stake in 12 solar assets aggregating 813 MWp of operating capacity collectively to EIYP and Sekura Energy, a portfolio company of EIYP," the utility firm said in a statement.
EIYP is an infrastructure focused fund managed by Edelweiss Alternative Asset Advisors and part of diversified Indian financial services conglomerate Edelweiss Group.
According to statement, the completion of this transaction (subject to the usual conditions associated with this type of operation) is expected to occur during the first half of 2020 and will allow ENGIE to reduce its net debt by more than EUR 400 million.
In India, as in many other countries, ENGIE uses all its engineering capabilities to design, finance and build renewable energy production capacity.
Once this capacity is built, ENGIE partially disposes of its interest and retains the operation and maintenance of the asset.
This transaction marks the beginning of an ambitious strategic partnership between ENGIE and EIYP, aiming to expand a growing solar platform. ENGIE will maintain its leading industrial role by remaining in charge of the development, construction and operation of present and future solar plants.
Paulo Almirante, ENGIE Executive Vice-President and Chief Operating Officer said "This transaction allows us to accelerate the implementation of our strategic model in renewables, and to free up capital to keep up investing in the very dynamic Indian solar market.
Head of EIYP, Subahoo Chordia, said this strategic partnership "brings the complementary capabilities of the fund and ENGIE together while sharing similar high governance standards and values."
EIYP will benefit from access to a strong future pipeline of quality solar assets to be developed and constructed by ENGIE under the terms of the agreement. This will also grow EIYP's Sekura Energy platform and make us a large investor in Indian energy space, Chordia added.
ENGIE has been present in India for over 40 years and employs around 1,000 people in clean power generation, engineering, and energy services.
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