Malaysia’s Yinson Holdings Berhad has reached agreements to acquire a stake in a 140MW photovoltaic portfolio in India.
Under the terms of the agreements Yinson has acquired a 37.5% equity interest in Rising Sun Energy, an India-incorporated company that owns two operational and adjacent solar parks in Rajasthan.
Yinson will pay INR554m (€6.6m) for the stake, subject to closing conditions, while also providing funding of INR600m to repay certain outstanding liabilities of RSE.
The agreements were entered into through Yinson’s wholly owned subsidiary, Yinson Renewables.
The two adjoining solar plants achieved their scheduled commissioning dates in 2017. Both have 25-year power purchase agreements, expiring in 2042, with NTPC Limited, India’s largest power utility.
Yinson group chief executive Lim Chern Yuan said: “This acquisition is a significant milestone for the company as it marks Yinson’s foray into renewable energy.”
Yinson Renewables chief executive David Brunt added: “India is an important growth market for our renewables segment, and we are excited to be playing a part in India’s renewable growth strategy. We look forward to working with the RSE team towards achieving our shared objectives.”
RSE founder and chief executive Arunav Sharma said: “We welcome Yinson as a new shareholder which will support RSE’s objectives to grow the business and become a leading renewable energy developer and operator. We believe that Yinson’s support and expertise will help to open up greater opportunities for RSE, both in India and globally.”