Piramal, APG co-invest in Essel Infrastructure

The duo is issuing a $132m mezzanine loan to a solar platform in India. The partnership has doled out over $1bn to infrastructure projects in the country since its formation in 2014.

Piramal Enterprises Ltd's Structured Investment Group, alongside with Dutch pension fund asset manager APG Asset Management (APG) will invest in the Essel Infrastructure's Solar IPP platform across India.

The two will jointly arrange a $132 million mezzanine loan to Essel Green Energy Private. The seven-year loan is split evenly between PEL and APG, targeting a return in the high teens, a spokesman from APG told PDI .

“Essel Group has ambitious plans to expand its foot-print in the green energy field. With the impetus provided by the Central Government to solar energy we are upbeat about the outlook for the industry,” said Ashok Agarwal,, chief executive of Essel Infraprojects.

The investment will be used to propel the company's solar power agenda across India.

“We view India as an attractive renewable energy market with favorable growth dynamics. APG is a strong supporter of increased investments in sustainable energy generation. We are pleased to support Essel Green Energy in growing its portfolio of solar projects and to contribute to meeting India's renewable energy targets,” said Hans-Martin Aerts, head of infrastructure investments Asia Pacific at APG.

India's Prime Minister Narendra Modi has championed solar power and helped launch a global solar alliance at the Paris climate summit to mobilise an attention to grab $1 trillion of funds worldwide by 2030.

PEL and APG formed a strategic alliance in 2014 that has grown to $1 billion in capital commitments today. It provides mezzanine funding to Indian infrastructure companies, in the renewable energy sector.

PEL is one of India's large diversified companies, with a presence in healthcare, healthcare information management and financial services. PEL's consolidated revenues were over $830 million in the fiscal year of 2015.

APG manages Dutch pension assets of more than €400 billion ($454 billion).

Essel Infrastructure makes venture investments in transport, power transmission and distribution, urban infrastructure, environment, renewable energy and integrated utilities.