Mahindra, Ontario Pension Plan Board Launch India's Largest Renewable Energy InvIT Worth Rs 2,263 Crore

The Mahindra Group and the Ontario Teachers' Pension Plan Board have co-sponsored the Sustainable Energy Infra Trust (SEIT), an Infrastructure Investment Trust (InvIT) focused on renewable energy. Marking its debut on the National Exchange on January 15, SEIT has emerged as India's largest in the renewable energy space.

The InvIT successfully raised a primary capital of Rs 1,365 crore ($165 million) during its initial unit offering. The response came from both global and Indian investors, with participation from key entities such as the Asian Infrastructure Investment Bank (AIIB), underscoring the trust's potential and significance in the renewable energy sector.

SEIT, established to scale up the growth of India's renewable energy sector, holds operational renewable power assets with a substantial generation capacity of approximately 1.54 GWp. These assets have been initially seeded by Mahindra Susten, a subsidiary of the Mahindra Group.

Anish Shah, the CEO & MD of Mahindra Group, expressed his satisfaction with the successful listing of SEIT, stating, "The listing of SEIT is a testament to the Group's ability to attract strong external investors. Mahindra Susten plans to achieve 5X growth in the next five years and will contribute to both the group's and the nation's green energy goals."

Mahindra Susten and SEIT have entered into a strategic Right of First Offer (ROFO) arrangement, complying with InvIT Regulations. This agreement ensures that renewable energy assets developed by Mahindra Susten will be first offered for sale to SEIT, reinforcing a collaborative approach to advancing sustainable energy projects.

As part of the deal, Mahindra Susten has received a capital infusion of Rs 897.8 crore ($108 million) through the sale of units from SEIT. Both Mahindra Group and Ontario Teachers' have demonstrated their commitment to driving sustainable practices by pledging to invest up to Rs 3,050 crore ($368 million) and Rs 3,550 crore ($428 million), respectively, into Mahindra Susten and SEIT.

"This milestone not only reinforces our commitment to investing globally in green and transition assets but also demonstrates the attractiveness of renewable energy investment opportunities in India," highlighted Deb Hajara, Managing Director of Infrastructure & Natural Resources at Ontario Teachers'.

SEIT's strategic approach, coupled with strong financial backing from key players, positions it as a pivotal player in India's transition towards a greener and sustainable future. The infusion of capital, coupled with the expertise and commitment of Mahindra Group and Ontario Teachers', is expected to propel the growth of SEIT and contribute significantly to India's renewable energy landscape.

The successful debut of SEIT on the National Exchange marks a milestone not just for the Mahindra Group but also for India's renewable energy sector. With a focus on operational excellence, sustainability, and strategic collaborations, SEIT is poised to play a pivotal role in shaping the future of renewable energy in the country.

As the global community intensifies efforts to combat climate change, initiatives like SEIT serve as a beacon, demonstrating the private sector's crucial role in driving sustainable development. The collaboration between Mahindra Group and Ontario Teachers' not only signals a significant investment in India's renewable energy potential but also showcases the increasing global interest in sustainable and environmentally conscious projects.