BlackRock Real Assets-led consortium to invest Rs 4,000 cr in Tata Power Renewables

Tata Power on Thursday said a consortium led by US-based BlackRock Real Assets will invest Rs 4,000 crore in its subsidiary, Tata Power Renewable Energy Ltd, for over 10 per cent equity stake.

Abu-Dhabi-based investment company Mubadala Investment Company (Mubadala) is also part of consortium GreenForest, Tata Power Company said in a statement.

GreenForest will also have the right to nominate one director and one observer on the Board of Tata Power Renewables and its material subsidiaries, it said.

"Tata Power and BlackRock Real Assets-led consortium, including Mubadala, have entered into a binding agreement to invest in Tata Power's renewable energy subsidiary, Tata Power Renewables.

"BlackRock Real Assets, together with Mubadala, shall invest Rs 4,000 crore (USD 525 million) by way of equity/compulsorily convertible instruments for a 10.53 per cent stake in Tata Power Renewables, translating to a base equity valuation of Rs 34,000 crore," it said.

According to the statement, the first round of capital infusion is expected to be completed by June 2022 and the balance funds will be infused by the end of the ongoing calendar year.

Moelis & Company is the financial advisor to Tata Power, while JP Morgan is the financial advisor to BlackRock Real Assets.

Tata Power Renewables is one of the largest renewable energy companies in India. Its vertically integrated operations have about 4.9 gigawatts (GW) of renewable energy assets.

The statement further said that the Board of Directors of Tata Power has decided to consolidate its renewables businesses under Tata Power Renewables.

The newly created structure will house all renewable energy businesses of Tata Power including utility-scale solar and wind generation assets, solar cell and module manufacturing, engineering, procurement and construction, rooftop solar, solar pumps, energy storage and electric vehicle charging infrastructure.

The proposed investment is expected to fund Tata Power Renewables' aggressive growth plans.

Over the next five years, Tata Power Renewables aims to achieve a portfolio of over 20 GW of renewables assets and a market-leading position in the rooftop and electric vehicle charging space across India, Tata Power said.

Tata Power CEO and Managing Director Praveer Sinha said, "I am delighted to welcome BlackRock Real Assets and Mubadala to join us to take the renewables business to the next level of growth. The collaboration will support us to pursue exciting opportunities that lie ahead in the coming decades."

Anne Valentine Andrews, BlackRock's Global Head of Real Assets, said: "Tata Power Renewables is at the forefront of India's ambition to secure greater energy stability for its citizens while positioning its economy for a low carbon future."

Khaled Abdulla Al Qubaisi, Chief Executive Officer, Real Estate and Infrastructure Investments at Mubadala, said: "Mubadala has a strong focus on renewable energy in multiple markets, so we are delighted to be co-investing with BlackRock Real Assets to help progress Tata Power Renewables' ambitions in India.

"We are proud to show our ongoing commitment to India with this investment and look forward to working with Tata Power to capitalize on the growth opportunities ahead."

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