India Grid Trust (IndiGrid) has completed the acquisition of another transmission asset, East North Interconnection Company (ENICL), from Sterlite Power at a value of $134 million. With this acquisition, IndiGrid’s AUM will increase by 10% to $1.6 billion. IndiGrid’s asset portfolio will increase to nine power transmission projects, with a total network of 20 power transmission lines spanning across more than 5,800 circuit kilometres across 13 Indian states.
The acquisition has been funded by internal accruals, proceeds from the preference issue done in May 2019 and new debt. 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 around 49%.
India Grid Trust operates as an infrastructure investment trust. The company invests, designs, finances, constructs, and maintains power transmission projects.
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