KKR And GIC’s Investment In India Grid Trust

Simpson Thacher represented KKR in its first investment through its Asia Pacific Infrastructure strategy.

KKR and GIC have invested in India Grid Trust (“IndiGrid”), India’s leading infrastructure investment trust. IndiGrid announced the closing of a preference unit issuance worth INR2,514 crores (US$363 million). As part of the transaction, KKR and GIC invested INR 1084 crores (US$157 million) and INR 980 crores (US$142 million), respectively, to collectively own 42% of IndiGrid’s outstanding units. KKR also applied to become a Sponsor of IndiGrid and plans to acquire an additional 15% of IndiGrid’s total units from Sterlite Power. Following the closing of the transactions, KKR and GIC will collectively own approximately 57% of IndiGrid’s outstanding units.

With the capital infusion provided by the new unit issuance, IndiGrid will purchase five electricity transmission assets worth INR11,500 crores (US$1.66 billion) from Sterlite Power. A share purchase agreement for the two operational transmission assets — NRSS XXIX and OGPTL — has been signed, while three additional assets will be purchased once they become operational. IndiGrid is an infrastructure investment trust established to own inter-state power transmission assets in India. Following the completion of the proposed acquisitions, IndiGrid’s AUM will rise to INR17,000 crores (US$2.5 billion).

The Simpson Thacher team included Ian Ho (Picture) and Sandra Kister (M&A); Jin Park and Joongwon Park (Capital Markets); and Katharine Moir and Dmitry Zelik (Tax).

Involved fees earner: Ian Ho – Simpson Thacher & Bartlett; Sandra Kister – Simpson Thacher & Bartlett; Katharine Moir – Simpson Thacher & Bartlett; Jin Hyuk Park – Simpson Thacher & Bartlett; Joongwon Park – Simpson Thacher & Bartlett; Dmitry Zelik – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: KKR;

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Author: Michael Patrini