AIIB invests $58.4 million in India’s Sustainable Energy Infra Trust
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The Asian Infrastructure Investment Bank (AIIB) has invested around $58.4 million (₹4.86 billion) in India’s Infrastructure Investment Trust, Sustainable Energy Infra Trust (SEIT). AIIB plans to aid the development of InvITs as a key infrastructure asset class in India.
“This demonstrates AIIB’s continued support for innovative infrastructure financing solutions, promoting green infrastructure and mobilizing private capital to deepen the breadth of financing availability to our Member’s infrastructure sector and to support their commitment in achieving Net Zero targets,” said AIIB Director General Dongik Lee in a release.
“The increasing power demand in emerging markets calls for broader private sector participation to finance growth renewable energy. AIIB continues to embark on strategic partnerships in the ecosystem to catalyze the growth of the infrastructure asset class,” he adds.
SEIT has eight operating solar power generation assets across India with 1.54 gigawatt-peak total capacity, and its successful listing showcases a strong capital-raising record, affirming InvITs as a reliable long-term financing avenue in India.
By backing SEIT’s formation, sponsors can convert investments in revenue-generating infrastructure assets into capital, facilitating the pursuit of ambitious growth plans, particularly in developing new renewable energy projects. This support from AIIB enhances investor confidence and can attract broader institutional capital to the sector.
This project is AIIB’s second investment in InvITs in India. In 2019, about $50 million was invested in Oriental Structural Engineers InvIT to finance roads and highways in India.
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