Virescent Renewable Energy Trust raises INR 2,150 crore of debt finance


US investor KKR-backed Virescent Infrastructure today announced its renewable energy-focused infrastructure investment trust (InvIT), Virescent Renewable Energy Trust (VRET), has raised INR 2,150 crore of debt financing via listed non-convertible debentures  (NCDs), long term debt financing, and working capital.

VRET raised INR 1,000 crore in its debut NCD issuance across 3-, 5- and 7-year tranches. This transaction marks the first-ever issuance by a Renewable Energy InvIT in India, thereby establishing a new yield curve. 

Virescent shall primarily use the NCD proceeds to refinance existing debt at the special-purpose vehicle (SPV) level as well as fund future acquisitions. 

“The success of the transaction highlights the faith of the investor community in the strength of the Sponsor and VRET’s robust business plan. Barclays Bank PLC, Trust Investment Advisors, and ICICI Bank acted as arrangers on the issuance.” 

VRET has raised an additional INR 1,000 crore of long-term financing from L&T Finance. This ensures complete debt tie-up for VRET’s immediate near-term acquisition pipeline. 

Further, VRET has availed a working capital facility of INR 150 crore from Tata Capital to enhance its liquidity position and meet its credit rating requirements. 

Recently, in September 2021, VRET was set up as a private listed InvIT and raised US$62 million of equity from a group of foreign and domestic investors, led by Alberta Investment Management Corporation (AIMCO). Further to the issuance, VRET has expanded its Board and appointed Akshay Jaitly as an Independent Director. The other independent directors include Pradeep Kumar Panja, chairman and managing director of Karnataka Bank and Member-Bank Board Bureau, and Vinay Kumar Pabba, former CEO of Brookfield Renewables and Ex-COO of Greenko.

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