Actis to purchase 500 MW solar power project from Fortum in India

Actis has struck an agreement with Fortum to acquire the 250-MW Pavagada II and 250-MW Rajasthan solar power projects in India.

Global infrastructure investment firm Actis has acquired 500 MW of Indian assets from Finland-based solar power producer Fortum.

The company stated that Fortum has signed an agreement to divest the 250-MW Pavagada II and the 250-MW Rajasthan solar power plants in India.

Approximately EUR 280 million ($ 333 million) is expected in the entire consideration of divestment on a debt and cash-free level including the effect of net debt deconsolidation.

In three tranches, the divestment will be completed and the capital gain recorded, the second half 2021 and in the first half 2022.

The parties have also signed a comprehensive agreement targeting further investment in solar power plants in India.

“We can utilise the strong competencies Fortum has gained over the years in solar development and construction, while utilising the financial strength and track record of Actis to realise the investment potential,” said Per Langer, Executive Vice President of Fortum’s City Solutions division.

As per the statement released, Fortum has developed and built 680 MW of solar energy in India since 2013. In line with the build-operate-transfer business model, the majority of this capacity has been divested over time to allow for additional investments with limited equity exposure.

Thrilled to be working with a firm of Fortum’s calibre and expertise, Mikael Karlsson, Partner and Head of Energy Infrastructure at Actis commented, “This is an important step for Actis as we further strengthen our presence in India building on our achievements to date.”