Edelweiss closes InvIT fundraise

AnZen Trust is a diversified and growth-oriented Energy InvIT focusing on high-quality energy assets with above initial AUM. 2,300 crore, Edelweiss said in a statement.

The fundraising by AnZen Trust was done through private placement and received an encouraging response from a diverse set of institutional and other qualified investors, who hold approximately 26% of the units.

“we raised 750 crore in primary capital for InvIT. Currently, the leverage of InvIT is around 30%, so we can raise funds through leverage for growth and acquisitions,” said Subahu Chordia, head of infrastructure funds at Edelweiss Alternatives.

EnGen Trust will invest in a diversified portfolio of energy assets, including transmission lines and renewable power projects, to provide long-term, predictable yields and growth to its investors, the statement said. This is the third energy-focused InvIT in India after KKR-owned IndiGrid and Verecent.

“Our strategy is different from other InvITs in the Indian market. This is a diversified energy InvIT, so we will invest in renewable, transmission assets as well as energy storage. We are not focused on any one asset class; This would be multiple asset types bundled in one InvIT. In addition, our strategy is to acquire mature operating assets with a proven track record of operations, as seen in large yielding companies in the West.

AnZen Trust has acquired two operating inter-state transmission assets in Punjab, Haryana and Bihar. These assets have residual transmission service agreements of over 30 years under the point of connection system managed by Power Grid Corporation of India. In addition, it has also received the Right of First Offer (ROFO) on the shareholding of its sponsor or associate companies in 12 solar power assets with a total generation capacity of about 813 MW. “EnGen Trust will help us provide an investment solution to meet the growing yield requirements of our customers and expand our customer franchises,” said Chordia.