ReNew Power, an Indian renewable energy producer, has sold its 117 MW rooftop solar portfolio to Fourth Partner Energy, a distributed solar startup, for $6.72 billion (US$89.9 million).
After subtracting an outstanding debt of $1.37 billion ($18.3 million), the net proceeds from the sale are $5.35 billion ($71.6 million). The transaction is expected to result in a profit for the corporation. The business said it sold the distributed rooftop solar portfolio to focus on major utility-scale projects and reallocate funds to higher-return possibilities.
EBIDTA (earnings before interest, taxes, depreciation, and amortization) will be lowered to 700 – 720 million ($9.35 – $9.55 million) as a result of the sale.
“Strong capital discipline is a core principle for ReNew,” said Sumant Sinha, chairman, and chief executive officer of ReNew Power, in response to the sale. This transaction demonstrates the value that can be realized by selling assets and improves our ability to take advantage of higher-return possibilities in the near term.” As of December 31, 2021, ReNew Power had a total capacity of 10.3 GW of renewable energy projects in India, including commissioned and committed projects. Fourth Partner Energy stated in July 2021 that it has purchased a distributed solar portfolio from Statkraft India with a capacity of 8.9 MW (DC).
Open access solar accounts for 5 MW, while rooftop solar accounts for the remainder. Fourth Partner Energy raised $125 million in equity fundraising earlier this year, according to Mercom. Norfund, a Norwegian investment fund, invested $100 million, with the remaining $25 million going to the existing shareholder, the Rise Fund. TGP is the manager of rising Vehicle, a worldwide impact investing fund.
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Resource: Mercom India
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