UAE - Mubasher: BlackRock Real Assets-led consortium, including Mubadala Investment Company (Mubadala), reached a binding agreement to invest in India-based Tata Power’s renewable energy subsidiary, Tata Power Renewable Energy Limited.
Mubadala and BlackRock Real Assets will invest $525 million through compulsorily convertible instruments to acquire a 10.53% stake in Tata Power Renewables, according to a press release on Thursday.
The final shareholding will range from 9.76% to 11.43% on final conversion.
The new platform consists of all renewable energy businesses of Tata Power, including those in utility-scale solar, wind, and hybrid generation assets, solar cell and module manufacturing, as well as engineering, procurement, and construction (EPC) contracting.
In the upcoming five years, Tata Power Renewables aims to hold a portfolio of more than 20GW of renewables assets and a market-leading position in the rooftop and electric vehicle charging space across India.
The CEO and Managing Director, Tata Power Company Limited, Praveer Sinha, said: "Tata Power Renewables is an industry leader with a broad and deep portfolio of next-generation renewables businesses well placed to scale up rapidly based on its strong and consistent performance over the years."
Meanwhile, the CEO of Real Estate and Infrastructure Investments at Mubadala, Khaled Abdulla Al Qubaisi, commented: "With a proven track record of green and clean energy generation and an experienced management team, Tata Power is one of India’s largest integrated power companies and is well positioned to support the country’s energy independence and transition."
