New Delhi: British International Investment (BII), the UK’s development finance institution, on Tuesday announced a tie-up with the Emerging Africa & Asia Infrastructure Fund (EAAIF) in support of India’s renewable energy targets.
BII said the partial syndication of its mezzanine debt investment in Blueleaf Energy to EAAIF, managed by Ninety One, will support the next phase of the power producer’s growth and India’s clean energy transition.
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Combined with BII's sector expertise and local presence, the tie-up is expected to help attract further private investment into climate infrastructure in the region.
"This deal shows that where British International Investment leads, other investors follow,” said Jenny Chapman, UK Minister for Development.
“The partnership between BII and Ninety One is not only good for business, it’s good for the planet too, helping Blueleaf to support clean energy transitions through solar, wind and energy storage projects across India.
"This is a great example of the type of partnership the UK’s Emerging Markets and Developing Economies Investor Taskforce is bringing about, and we want to see even more as part of our modern approach to development,” she said.
The transaction will see EAAIF participating for 50 percent of the 75-million-dollar facility to Blueleaf Energy, underwritten by BII. As a result, EAAIF will support the power producer in developing 850MW of greenfield renewable energy capacity.
“This transaction is a strong example of our originate-to-share approach under British Climate Partners, where we deploy our capital to unlock projects and then bring in institutional investors to scale them," said Leslie Maasdorp, BII Chief Executive.
“By recycling our capital and partnering with impact investors like EAAIF, which is managed by Ninety One, we can accelerate the build-out of clean energy infrastructure while maximising our impact,” he said.
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The investment is said to align with EAAIF's focus on financing climate-resilient infrastructure that accelerates decarbonisation while supporting sustainable economic development. The transaction also marks an expansion of EAAIF's climate infrastructure investments in Asia, and this is the fund’s third financing in the renewable energy sector in India.
“This transaction demonstrates how development finance institutions and private investors can work together to expand access to renewable energy infrastructure by bringing additional capital to projects with strong long-term fundamentals," said Hendrik du Toit, founder and Chief Executive, Ninety One.
India has been heightening its climate ambitions by targeting a 47 percent reduction in emissions relative to its economic size by 2035. Blueleaf Energy aims to make a contribution to this transition, through utility-scale solar, wind and energy storage projects and helping to increase the share of renewables in the overall energy mix in India.
BII, an impact investor, said it will retain a 50 percent stake and continue to support Blueleaf’s growth, with the intention to mobilise further private capital over time.
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