Enel picks HSBC to sell India green portfolio
NEW DELHI : Italy’s Enel Group is looking to sell its entire renewable energy business in India and has hired HSBC for the transaction, two people aware of the development said. The proposed deal may have an equity value of around $300 million, the people said. The portfolio of Enel Green Power India comprises 760 megawatts (MW) of operational wind and solar power assets and a development pipeline of 2 gigawatts (GW).
It also has power purchase agreements totalling 190MW. Of the operational capacity, solar power projects comprise 420MW, with the balance 340MW coming from wind power projects. The sale process is expected to be launched shortly.
“The process is at a very early stage," said one of the two people on the condition of anonymity. In 2020, Enel Green Power India joined hands with Norfund, a Norwegian development finance institution, to jointly finance, build and operate new renewable projects in India. Enel Group was also interested in taking over the electricity distribution functions of Puducherry, and had submitted non-binding offer to buy Reliance Infrastructure Ltd’s Delhi electricity distribution businesses.
An Enel’s spokesperson said in an emailed response, “We decline to comment on market rumours." An HSBC spokesperson also declined comment. There has seen a raft of Indian green energy deals, including Acme Group mandating EY to sell a majority stake up to 51% in its proposed infrastructure investment trust (InvIT) in a deal expected to have equity value of around $1.3 billion, in play, as reported by Mint. Also, India’s quasi-sovereign wealth fund National Investment and Infrastructure Fund (NIIF)-backed Ayana Renewable Power Pvt.
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