Brookfield May Invest in Tata Power Renewable InvIT
Canadian fund Brookfield Renewable Partners is in talks to invest up to $700 million in the renewable power investment trust (InvIT) of Tata Power Company Ltd (TPCL), India's oldest power producer, said two people close to the development. The company has started the process of separating books of renewable energy business to complete stake sale by end of this financial year. "The deal negotiations are at the initial stage and there are about 3-4 foreign funds who have evinced interest in partnering in InvIT. Brookfield is likely to invest up to $600 million, besides one or two other partners. Tata Power plans to sell 49 per cent stake in the InvIT to investors and retain the rest. It looks to transfer about Rs 11,000 crore of debt, which is part of the renewable portfolio, along with the assets to the InvIT. Morgan Stanley Research values the 2,630 megawatts (MW) renewables portfolio of TPCL between Rs 18,500 crore and Rs 20,400 crore. The company targets to drastically cut its gross debt, launching infrastructure investment trust (InvIT) in the second half of this financial year. According to the estimates of experts, the company wants to reduce the debt by at least Rs 18,000-20,000 crore on its books through the process.
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