Global investors including APG, IFC, and AIIB compete to invest $250 million into Mahindra InvIT

livemint.com:

global investors including Dutch pension fund APG Asset Management, the International Finance Corp (IFC), and Asian Infrastructure Investment Bank (AIIB) are in competition with each other to invest up to $250 million ( ₹2,080 crore) in Mahindra Susten's renewable infrastructure investment trust (InvIT), according to a report published by Economic Times. Mahindra Group's renewable-focussed engineering, procurement and construction (EPC) unit, and an independent power production (IPP) unit are part of Mahindra Susten's businesses which has a value of about $1 billion, sources told ET. A person familiar with the matter said that the deal is likely to be closed in the next two to three months.

Currently, all three global investors are conducting due diligence on the assets which are part of Mahindra InvIT. For the stake of around 35% in Mahindra InvIT, the deal will include primary and secondary share sales, the person told the news publication.

Later on, Mahindra Susten will bring in a few domestic investors like mutual funds or family officers to meet the minimum shareholder requirements, ET reported. Currently, the Canadian fund Ontario Teachers' Pension Plan Board (OTPP) owns about a 30% stake in renewable energy firm Mahindra Susten Pvt.

Ltd for an equity value of ₹2,371 crore ($300 million). The deal envisages the setting up of an infrastructure investment trust (InvIT) in compliance with the regulations of the Securities and Exchange Board of India.

Avendus Capital acted as the financial adviser to the Mahindra Group for the transaction, and Ambit was the financial adviser to Ontario Teachers’. The Mahindra Group and Ontario Teachers’ jointly explored the sale of an additional 9.99% stake in Mahindra Susten in May