Mumbai, January 15, 2024 – Mahindra Group and Ontario Teachers’ Pension Plan Board have joined forces to co-sponsor India’s largest renewable energy Infrastructure Investment Trust (InvIT). The InvIT, named Sustainable Energy InvIT (SEIT), boasts an impressive offer size of INR 2262.8 Crore (USD 273 Million).
A Boost for India’s Renewable Energy Ambitions
The collaboration between Mahindra Group and Ontario Teachers‘ marks a significant milestone in reinforcing their commitment to supporting India’s renewable energy ambitions. Deb Hajara, Managing Director, Infrastructure & Natural Resources at Ontario Teachers’, expressed pride in contributing to India’s renewable energy goals. This partnership not only aligns with global investments in green and transition assets but also highlights the attractiveness of renewableenergy investment opportunities in India.
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Investor-Friendly Instrument for Growth
Avinash Rao, CEO of the Investment Manager to SEIT, emphasized the core importance of renewable energy in India, citing its substantial growth potential. He acknowledged the government’s focus on sustainable energy, making the industry highly attractive for investments. The InvIT structure, known for being investor-friendly, is expected to catalyze further growth in the portfolio of sustainable energy investments.
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Strong Sponsorship and Collaborative Efforts
Mahindra Group, a multinational federation of companies with a rich history dating back to 1945, brings its leadership position in various sectors, including renewable energy, to the collaboration. Ontario Teachers’, with net assets exceeding $249.8 billion, contributes its global investment expertise to this partnership.
Kotak Mahindra Capital Company Limited, Axis Capital Limited, and Avendus Capital Private Limited played pivotal roles as Placement Agents, facilitating the successful execution of the transaction. Legal counsels Cyril Amarchand Mangaldas (for SEIT and the Sponsors) and S&R Associates (for the Placement Agents) ensured legal diligence.
This collaboration not only signifies a robust financial move but also underscores the commitment of major players in driving positive change in the renewable energy landscape in India. The involvement of marquee investors, including AIIB, further solidifies SEIT’s position in the market.
In conclusion, the co-sponsorship of SEIT by Mahindra Group and Ontario Teachers’ is a testament to the thriving renewable energy sector in India and the global community’s confidence in its growth potential. The InvIT structure emerges as a key instrument to attract investments, setting the stage for a sustainable and prosperous future in the renewable energy landscape.
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