India Grid Trust acquires two transmission assets from Sterlite Power

IndiGrid's AUM increase to Rs 10,660 cr paost acquisition

India Grid Trust announced the closure of the acquisition of two power transmission assets, NRSS XXIX Transmission (NTL) and Odisha Generation Phase II Transmission (OGPTL), from Sterlite Power for an enterprise value of Rs 5,025 crore. IndiGrid had signed definitive documents to acquire the two assets in April 2019.

The acquisition has been funded through the preference unit issuance worth Rs 2,514 crore, subscribed by KKR, GIC and other capital market investors in May 2019. The remaining amount has been funded through debt raise at IndiGrid and OGPTL. For this purpose, IndiGrid has issued Rs 1,400 crore of AAA rated debentures and Rs 200 crore worth AAA rated Market Linked Debentures, first of its kind issuance by an InvIT in India. A loan of Rs 550 crore at OGPTL has also been extended by Axis Bank. Post-acquisition, IndiGrid's net debt to AUM is below 49% and significantly lower than the permissible leverage cap of 70%, leaving significant debt headroom for future acquisitions.

Following the acquisition, IndiGrid's AUM has increased from Rs 5,220 crore to Rs 10,660 crore. The InvIT currently manages a portfolio of eight power transmission assets with a total network of 18 power transmission lines that span more than 4,900 circuit kilometers across 11 Indian states. These acquisitions of assets will significantly expand IndiGrid's portfolio and better enable it to deliver stable and growing yield.

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