India Grid Trust acquires ninth transmission asset
India Grid Trust today announced the acquisition of transmission asset, East North Interconnection Company Limited (ENICL), from Sterlite Power at a valuation of USD 134 million.
After this acquisition, IndiGrid’s asset under management (AUM) will increase by 10 per cent to approximately USD 1.6 billion. IndiGrid’s asset portfolio will increase to nine power transmission projects and a network of 20 power transmission lines.
ENICL is a part of inter-state transmission system network developed by Sterlite Power. It consists of two 400 KV transmission lines with a approximately 900 circuit kilometers across Assam, Bihar and West Bengal. It is a strategic asset and is crucial for power exchange across north-eastern as well as the eastern region of India. IndiGrid had signed an extension of right of first offer agreement (ROFO) with Sterlite Power for ENICL in May 2019.
For the purpose of refinancing the existing debt in ENICL, IndiGrid has availed funding of Rs 9 billion from Axis Bank. With this acquisition, IndiGrid’s net debt/AUM will be at approximately 49 per cent.
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