NIIF to hold majority stake in CDC's Ayana Renewable after fresh infusion

CDC will put in $70 million as addl equity, NIIF $284 million and GGEF $36 million. The commitment is subject to final approval processes

CDC Group, the UK’s development finance institution and impact investor, National Investment and Infrastructure Fund (NIIF), and EverSource Capital-managed Green Growth Equity Fund (GGEF) today announced additional equity funding in Ayana Renewable Power (Ayana), an Indian renewable energy platform. The proposed transaction envisages NIIF to become the majority shareholder in Ayana. 

CDC will put in $70 million, NIIF $284 million and GGEF $36 million. The commitment is subject to final approval processes.

According to Sujoy Bose, managing director and chief executive officer, NIIF, the fund’s continuing support to Ayana demonstrates its belief in the large growth potential of the Indian renewable energy sector and in Ayana’s ability to generate stable risk-adjusted returns for investors. “With committed like-minded shareholders and a strong management team, we are confident that Ayana will become a leading player in this space, over the next few years,” he said.

Founded in 2018 by UK government-owned development finance institution CDC, Ayana was launched to address challenges in alignment with the UN Sustainable Development Goals (SDGs). The platform develops utility-scale renewable power solar and wind generation projects across India to build cost-effective capacity. To date, Ayana has received equity funding of $721 million to scale up its renewable energy portfolio to over 4GW over the next two years.

“Reducing global carbon emissions to net zero by 2050 is essential to limit the impact of climate change. Building this green energy capacity is vital to India’s long-term economic development, decarbonise the energy mix away from coal and support the creation of jobs,” said a joint statement.

Ayana currently has 1.14 GW of solar generation capacity under various stages of development/operation across multiple Indian states, and a strong future pipeline of renewable energy opportunities. “Today’s announcement underlines the importance of private investment in catalysing green growth. I’m delighted this investment will help Ayana scale up its green energy capacity and support India’s ambition to build 450 GW of renewable energy by 2030. This demonstrates our commitment to supporting the clean energy transition and reinforces the shared ambition of the UK and India to build a greener future,” said Jan Thompson, British acting high Commissioner to India.

Srini Nagarajan, CDC’s head of Asia, said CDC’s commitment to tackling the climate emergency was the driving force behind the creation of Ayana in 2018. “Two years on and I’m delighted that we have mobilised significant commercial capital behind the cause and into Ayana. NIIF would now be the largest shareholder of a company that is delivering affordable and accessible renewable energy across India – meeting the challenge of climate change and delivering prosperity within a new, green economy. CDC’s additional capital also reiterates the UK’s commitment to investing in India and the strong partnership between our countries.”

Dhanpal Jhaveri, CEO, EverSource Capital, said “The infusion of more capital into our utility-scale platform Ayana, corroborates the belief in India’s promising renewable energy sector. This investment will strengthen our commitment to ensure the transition to zero carbon power generation, creation of job opportunities and accessibility of clean energy across India.”