1 min read.Updated: 29 Sep 2021, 01:00 AM ISTLivemint
VRET raised the amount from a group of foreign and domestic investors, led by AIMco
Canadian funds have been placing significant India bets and represent the so-called patient capital, which seeks modest yields over time
Virescent Renewable Energy Trust (VRET), India’s first renewable energy infrastructure investment trust (InvIT) from KKR’s Virescent Infrastructure has raised $62 million from a group of investors led by Alberta Investment Management Corporation (AIMCo), the firms said in a statement.
InvITs manage income-generating infrastructure assets, typically offering investors a regular yield and a liquid method of investing in infrastructure projects. The Union budget presented earlier this year exempted dividend payments made to real estate investment trusts (REIT) and InvITs from tax deduction at source and enabled debt financing of InvITs and REITs by foreign portfolio investors.
“VRET has raised ₹4.6 billion ($62 million) from a group of foreign and domestic investors. Leading the transaction, on behalf of its clients, is Alberta Investment Management Corporation, one of Canada’s largest institutional investment managers," the firms said, according to a joint statement.
Canadian funds have been placing significant India bets and represent the so-called patient capital, which seeks modest yields over time. India fits the risk profile given that green energy markets here have matured from the early risk stage. Some of the major Canadian investors in India are Canada Pension Plan Investment Board, Caisse de dépôt et placement du Québec, Brookfield Asset Management, and Ontario Municipal Employees Retirement System (OMERS).
AIMCo has around CAD $123 billion of assets under management and invests globally on behalf of 32 pension, endowment, and government funds from the province of Alberta.
“The AIMCo Infrastructure group manages a portfolio of over CAD $9.6 billion in investments, comprising primarily long-term equity positions in Organisation for Economic Co-operation and Development-based infrastructure assets. These assets typically provide essential services to the public, have an operating history, and are either regulated or have highly contracted revenues with potential for long-term capital appreciation. AIMCo infrastructure investments are intended to match long duration real return asset characteristics with inflation-indexed pension liabilities," according to the statement.