RE company SolarArise sells portfolio to LSE-listed investment trust

Solar power project developer SolarArise has sold its entire portfolio of 434 megawatt (Mw) to existing investor ThomasLloyd Energy Impact Trust (TLEI), which is listed on the London Stock Exchange (LSE).

Gurgaon-based SolarArise said it is now an utility-scale solar company with assets listed as a part of a trust on the LSE. TLEI, in a separate public disclosure, said it has completed acquiring the "remaining 57 per cent economic interest" in SolarArise India Projects Private Limited to take its total ownership to 100 per cent. The consideration of $38.5 million was funded from existing cash resources, TLEI said. In August 2022, TLEI had concluded the 43 per cent stake acquisition in SolarArise.

SolarArise was founded in 2015 by entrepreneurs Tanya Singhal, Anil Nayar, and James Abraham. It has investments from Core Infrastructure India Fund Pte Ltd, an equity fund managed by Kotak Mahindra and Global Energy Efficiency, and Renewable Energy Fund, a fund advised by European Investment Bank Group.

“Our goal was to grow a valuable portfolio of solar projects that put India on the road to a fossil-free future. With this acquisition, our investors have received multiples on their investment,” said Tanya Singhal, co-founder and director of SolarArise.

The company has a portfolio of 430 Mw of solar power projects in five states, of which 234 Mw is operational and the rest is under construction.

TLEI’s website says it is the first and only dedicated company on the LSE to provide direct access to sustainable energy infrastructure in the fast-growing economies of Asia.

Nandita Sahgal Tully, head of M&A and project finance at Investment Manager, a wholly owned subsidiary of TLEI, said after acquiring the remaining interest in SolarArise, the investment portfolio of TLEI now has nine operating solar plants and one construction stage solar plant with a total capacity of 514MW.

“We also anticipate the completion of the two Vietnamese solar projects shortly, following the announcement of their acquisition on 2 November 2022. Our strategy of investing in renewable energy projects across a balanced portfolio of construction-ready and operational assets in fast-growing economies in Asia is a key differentiator in targeting long-term double-digit financial returns and new, significant and ongoing impact,” said Tully in a statement by TLEI.