Macquarie SBI Infra Fund in $25m hydro investment

The India-focused infrastructure fund’s investment in an Indian renewable energy firm is part of a larger commitment to hydropower generation.

The Macquarie SBI Infrastructure Fund, jointly managed by Macquarie and the State Bank of India, has directed $25 million into Soham Renewable Energy India in a follow-on allocation. The investment is part of a larger $75 million that the joint venture has committed to the renewable energy firm for operational and emerging projects.

The fund’s previous position in the company – which represented 2 percent of its total assets – coupled with private equity extended by D. E. Shaw Group, has allowed Soham to build and operate a pair of hydroelectric power plants with another five such projects under development. 

The most recent capital injection provided by the fund will permit the clean energy firm to bring under-construction projects to completion including the acquisition of required licensing.

The Macquarie SBI joint venture seeks to be a player in small-scale hydropower development across India and expects to benefit from government programmes and income provided by power generation.

Soham director Suchindra S. Shetty said in a statement:  

“The energy deficit that Karnataka and most of India is facing is a commonly known fact and we are proud that our power projects will contribute towards addressing that deficit, besides creating employment opportunities and augmenting the socio-economic development in all the areas where Soham’s projects are coming up.”

India requires an investment of $1 trillion to refurbish its infrastructure throughout the country, according to the Macquarie SBI website. The firm expects that private capital is going to provide a significant percentage of that financing.