ReNew Power on Thursday today announced that it has sold its rooftop solar portfolio to Fourth Partner Energy for Rs 672 crore ($89.9 million).
Headquartered in Hyderabad, Fourth Partner is backed by TPG and Norfund.
A statement from ReNew Power said that after accounting for an outstanding debt of Rs 137 crore, the cash proceeds from the sale will amount to Rs 535 crore. ReNew expects to record a gain from the deal, it said.
With the sale, the run-rate-adjusted EBITDA for ReNew’s total portfolio will be reduced by Rs 70 crore - 72 crore.
“Strong capital discipline is a core value for ReNew. This sale illustrates the value that can be released through sale of assets and enhances our ability to capitalise on higher-return opportunities in the near term," Sumant Sinha, chairman and CEO, ReNew Power, said.
The statement said that the sale allows the company to fully leverage its competitive advantages of scale, strong asset management, digital analytics, and financing innovation.
ReNew's portfolio includes wind and solar energy projects, hydro projects and distributed solar energy projects. As of December 31, 2021, ReNew had a total capacity of 10.3 GW of renewable energy projects across India including commissioned and committed projects.
