Troubled infrastructure developer Infrastructure Leasing & Financial Services has started the process of monetising its renewable energy portfolio, which includes operational wind and solar assets with a combined capacity of 973.5MW.
The divestment also includes a wind asset management company with a team of 47 people, under-construction wind farms with a total capacity of 104MW, and a solar business division with 300MW of projects under development, according to documents posted on the IL&FS website.
IL&FS did not immediately reply to questions regarding the total estimated price of the projects. A spokesman for Arpwood, one of the financial firms advising IL&FS on the transaction, declined to comment on the issue.
The infrastructure developer defaulted on several payments in September, after announcing that more than $2.1 billion of its liquidity was “stuck in claims and termination payments”. Fearing the crisis could spread across the country’s financial markets, the Indian government appointed a new board in early October that is now working on a resolution plan for the firm.
The total capacity of the operational wind assets on sale amounts to 873.5MW. Up to 77 percent of the wind energy projects are backed by PPAs of 10 years or longer, signed with a “diversified mix of public utilities and single companies”, the company has revealed. More than 80 percent of the projects have been operating for more than three years, IL&FS says.
The company will be accepting expressions of interest for their portfolio until 10 December. The projects have been divided into several asset portfolios and baskets, that can be acquired individually or in combination.
IL&FS will be accepting offers from corporations with a minimum net worth of 5 billion Indian rupees ($70.9 million; €62.1 million) and asset managers with a minimum of 20 billion rupees of AUM available to invest in Indian assets.
Several Indian-based fund managers have told Infrastructure Investor that IL&FS will attract strong interest from private equity funds.
The company, which was founded in 1987, currently holds a large portfolio of infrastructure assets in the country, including 10,800 kilometres of roads that are already operational; maritime and logistics facilities valued at more than $2 billion; and 840 kilometres of power transmission lines, according to their 2016-17 annual report.