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Caisse commits to Indian power project investment vehicle

An affiliate of Tata Power Co Ltd and ICICI Venture have launched a platform company to invest in power projects in India over the next two to three years. The platform, which will focus on acquisitions of controlling stakes in power generating companies, reflecting conventional thermal, hydroelectric and transmission assets, has raised initial capital of up to US$850 million. The amount may be increased in the future, depending on market opportunities. The platform’s backers include the Caisse de dépôt et placement du Québec. Earlier this year, the Caisse opened its first office in India to scout for deals in the region.

PRESS RELEASE

Tata Power and ICICI Venture partner to launch Power Platform with global investors 

National, September 09, 2016

Platform targets power sector operating & near operating assets

Joint commitment of up to USD 850 million by Tata Power, ICICI, CDPQ (Canada), KIA (Kuwait) and SGRF (Oman)

Platform to invest in advanced thermal, hydro and transmission assets

Tata Power’s wholly owned subsidiary Tata Power International Pte Limited and ICICI Venture today announced the creation of a platform company (“Platform”) to facilitate investment in power projects in India in the coming two-three years, which are in advanced stages & near operational readiness or operating. The Platform is co-sponsored by Tata Power and ICICI Bank and has commitments from partner investors, Caisse de dépôt et placement du Québec (CDPQ) of Canada, Kuwait Investment Authority (KIA) and State General Reserve Fund (SGRF) of the Sultanate of Oman, which are some of the largest investors globally. The Platform will raise an initial capital of up to USD 850 million to be contributed by the sponsors and partner investors either directly or through their affiliates. This can be upsized going forward, depending on market opportunities. The Platform targets acquisition of controlling stakes in power generating companies, both conventional thermal, hydroelectric and transmission assets in India.

“It has been our constant endeavor to leverage opportunities in the Indian power sector and create stake holder value through organic and inorganic means. This Platform is one such step in this direction for assets that would be win-win for all stakeholders as it would be value accreting considering the assets would be near-completion or already operating. We are happy to have Tata Power International has taken the initiative to join with co-sponsor & investors of tremendous reputation namely ICICI, CDPQ, KIA and SGRF & we hope this would generate good value for them too”, said Mr. Anil Sardana, CEO & Managing Director, Tata Power.

“The Platform combines the complementary skills of the sponsors and blue-chip sophisticated investors. Insightful understanding of the lndian infrastructure ecosystem supported by discerning long term global capital would provide a framework for investments with an optimum risk-return profile and also act as a catalyst for revitalization and growth of the Indian Power sector”, said Mr. Mohit Batra, Executive Director, ICICI Venture.

“Tata Power and ICICI are key strategic players in India and their sophisticated knowledge of the market, combined with their vast expertise in infrastructure and energy, will provide critical insight to the Platform. As we continue to build our presence in India, a priority market for us, we value these well-established partners that share our long-term approach to investing”, said Mr. Rashad Kaldany, Executive Vice-President, Growth Markets at CDPQ.

“We are excited to be part of this Platform that combines the expertise of two of India’s leading business groups along with international reputed institutional investors. We are also particularly thrilled to invest in the world’s 5th largest electricity producing country and increase our exposure to Indian infrastructure, a key beneficiary of India’s economic development” said Mr. H.E. Abdulsalam Al Murshidi, Executive President of SGRF.

Development of the Indian power sector

In 2014, the government adopted an ambitious five-year program worth up to USD 250 billion to complete the electrification of the country to sustain economic growth, improve living conditions for the poorest populations, and replace traditional fuels with electricity. The additional capacity required to meet the demand is estimated at 93 GW by 2022, and will be generated through conventional and renewable sources. The required investments will come from both public sources and private investors.

About Tata Power:
Tata Power is India’s largest integrated power company with a growing international presence. The Company together with its subsidiaries and jointly controlled entities has an installed gross generation capacity of 9432 MW and a presence in all the segments of the power sector viz. Fuel Security and Logistics, Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading. It has successful public-private partnerships in Generation, Transmission and Distribution in India namely “Tata Power Delhi Distribution Limited” with Delhi Vidyut Board for distribution in North Delhi, ‘Powerlinks Transmission Ltd.’ with Power Grid Corporation of India Ltd. for evacuation of Power from Tala hydro plant in Bhutan to Delhi and ‘Maithon Power Ltd.’ with Damodar Valley Corporation for a 1050 MW Mega Power Project at Jharkhand. Tata Power is serving more than 2.6 million distribution consumers in India and has developed the country’s first 4000 MW Ultra Mega Power Project at Mundra (Gujarat) based on super-critical technology. It is also one of the largest renewable energy players in India with a clean energy portfolio of 1996 MW. Its international presence includes strategic investments in Indonesia through a 30% stake in the leading coal company PT Kaltim Prima Coal (KPC), 26% stake in mines at PT Baramulti Suksessarana Tbk (“BSSR”); in Singapore through Trust Energy Resources to securitize coal supply and the shipping of coal for its thermal power generation operations; in South Africa through a joint venture called ‘Cennergi’ to develop projects in sub-Sahara Africa; in Zambia through 50:50 joint venture with ZESCO for 120 MW Hydro which has become operational in 2016; in Georgia through AGL which is a joint venture with Clean Energy, Norway & IFC for development of 185 MW hydro project which is scheduled to be commissioned in 2016; in Australia through investments in clean coal technologies and in Bhutan through a hydro project in partnership with The Royal Government of Bhutan. With its track record of technology leadership, project execution excellence, world class safety processes, customer care and driving green initiatives, Tata Power is poised for a multi-fold growth and committed to ‘lighting up lives’ for generations to come”. Visit us at: www.tatapower.com

ABOUT ICICI VENTURE AND ICICI BANK
ICICI Venture is a specialist alternative assets manager based in India. The firm is a wholly owned subsidiary of ICICI Bank (www.icicibank.com), the largest private sector bank in India. ICICI Venture has been at the forefront of driving entrepreneurship in India for over two decades, and till date, various funds managed by the firm have invested in over 500 companies. The firm has played a key role in establishing the foundation for several new age businesses in India, by providing growth capital funding to companies in sectors as diverse as Information Technology, Life Sciences and Healthcare, Media & Entertainment, Banking & Financial Services, Infrastructure, Retail, Aviation, Auto Components, Construction services, Real Estate, Biotechnology, Textiles, Fine Chemicals, Consumer Products, Logistics, etc. ICICI Bank Ltd (NYSE:IBN) is India’s largest private sector bank with consolidated total assets of US $ 138.67 billion at March 31, 2016. ICICI Bank’s subsidiaries include India’s leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI Bank’s presence currently spans 17 countries, including India.

ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ)
La Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2016, it held CA$254.9 billion in net assets. As one of Canada’s leading institutional fund managers, la Caisse invests globally in major financial markets, private equity, infrastructure and real estate. CDPQ is present in India through its subsidiary, CDPQ India, located in New Delhi. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.

ABOUT KUWAIT INVESTMENT AUTHORITY
The Kuwait Investment Authority (KIA) is an autonomous government body responsible for the management and administration of the General Reserve Fund (GRF), and the assets of the Future Generations Fund (FGF), as well as any other funds entrusted to it by the Minister of Finance for and on behalf of the State of Kuwait. The Authority invests in the Local, Arab and International Markets with its main office located in Kuwait City and a branch office in London, UK. Additional information is available at www.kia.gov.kw.

ABOUT STATE GENERAL RESERVE FUND
SGRF (www.sgrf.gov.om) is the primary sovereign wealth fund of the Sultanate of Oman with a focus on investing the Omani Government’s reserves to provide a long-term return for future generations, while also diversifying away from the oil & gas sector. SGRF achieves this by investing primarily internationally across a range of asset classes. Headquartered in Muscat, Oman, SGRF has direct investments in some 25 countries internationally in addition to managing a diversified portfolio of listed market investments across different asset classes. For its direct investment program, SGRF has a particular interest in sectors underpinned by long-term fundamental ‘megatrends’ such as ports, transportation & logistics, healthcare, power & utilities, mining & resources etc. SGRF also looks to make strategic investments that can be a catalyst to the development and diversification of the Omani economy

For further information, please contact:
Shalini Singh
Head – Corporate Communications
The Tata Power Company Limited
Email: shalinis@tatapower.com

Sneha Dev / Jaison Rebello
Rediffusion / Edelman
9958000706/ 8286939726
Email: sneha.dev@edelman.com/ Jaison.Rebello@edelman.com

Photo courtesy of Reuters/Vivek Prakash