Edelweiss Real Assets Managers Ltd, a unit of Edelweiss Alternatives, on Wednesday announced the close of the fundraising for AnZen India Energy Yield Plus Trust, its maiden energy infrastructure investment trust (InvIT).
AnZen Trust is a diversified and growth-oriented energy InvIT focusing on high-quality energy assets, with an initial AUM of over ₹2,300 crore, Edelweiss said in a statement.
The fundraising of AnZen Trust was through private placement and received an encouraging response from a diversified set of institutional and other eligible investors who hold about 26% of the units.
“We have raised ₹750 crore in primary capital for the InvIT. Currently, the leverage of the InvIT is around 30%, so we could raise money through leverage for the growth and acquisitions," said Subahoo Chordia, head of infrastructure funds at Edelweiss Alternatives.
AnZen Trust will look to invest in a diversified portfolio of energy assets, including transmission lines and renewable power projects, to provide long-term, predictable yield and growth to its investors, the statement said. This is the third energy-focused InvIT in India, following KKR-owned IndiGrid and Virescent.
“Our strategy is different from other InvITs in the Indian market. This is a diversified energy InvIT, so we will invest in renewables, transmission assets as well as energy storage. We are not focused on a single asset class; it will be multiple asset types bundled into one InvIT. Also, our strategy is to acquire mature operating assets with a certain track record of operations, similar to large yield cos seen in the West.
AnZen Trust has acquired two operating inter-state transmission assets in Punjab, Haryana and Bihar. These assets have a residual transmission service agreement tenure of over 30 years under the point of connection mechanism managed by Power Grid Corp. of India. Additionally, it also has got the right of first offer (ROFO) on the shareholding of its sponsor or affiliates in 12 solar energy assets with an aggregate generation capacity of about 813 megawatts. “AnZen Trust will help us provide an investment solution to meet the growing yield requirements of our clients and expand our customer franchisee," Chordia said.
