Private equity firm KKR-backed India Grid Trust (IndiGrid), on Tuesday announced the acquisition of a transmission asset, East North Interconnection Company Limited (ENICL), from Sterlite Power at a value of $134 million.
With this acquisition, IndiGrid’s AUM will increase by 10% to $1.6 billion. IndiGrid’s asset portfolio will increase to nine power transmission projects, with a total network of 20 power transmission lines spanning across more than 5,800 circuit kilometres across 13 Indian states.
ENICL is a part of the Inter State Transmission System network developed by Sterlite Power. It consists of two 400 KV transmission lines with a total of 900 circuit kilometers across Assam, Bihar and West Bengal. The acquisition has been funded by internal accruals, proceeds from the preference issue done in May 2019 and new debt. For the purpose of refinancing the existing debt in ENICL, IndiGrid has availed funding of Rs900 crore from Axis Bank.
“This acquisition is in line with our strategy to acquire accretive assets with long term certainty of cash flows. Our focus is to not only ensure stable distribution to unit holders by owning assets with long term contracts but also grow it with accretive acquisitions. IndiGrid has another $ 855 million (approx Rs6,500 crore) pipeline of transmission projects under the framework agreement with Sterlite Power providing visibility of $2.4 billion (Rs18,000 crore) of AUM over next two years,” said Harsh Shah, Chief Executive Officer of IndiGrid.
This article was first published on livemint.com.