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AIIB Invests $58.4 Million in India’s Largest Renewable Energy InvIT

The Asian Infrastructure Investment Bank (AIIB) has infused INR 4.86 billion (about USD 58.4 million) into Sustainable Energy Infra Trust (SEIT), India’s largest Renewable Energy Infrastructure Investment Trust (InvIT). SEIT, supported by Mahindra Susten Private Limited and Ontario Teachers’ Pension Plan, boasts eight operational solar power assets with a combined capacity of 1.54 gigawatts-peak spread across India. This marks AIIB’s second foray into InvITs in India, emphasizing its commitment to innovative infrastructure financing solutions.

Key Points

  1. Strategic Investment: AIIB’s injection of capital into SEIT signifies its dedication to fortifying InvITs as a crucial infrastructure asset class in India.
  2. Prior Ventures: Following its initial investment in Oriental Structural Engineers InvIT in 2019, focused on road and highway financing, AIIB aims to mobilize long-term private institutional capital for renewable energy growth.
  3. Growth Catalyst: The investment in SEIT provides sponsors with a significant avenue to monetize investments in revenue-generating infrastructure assets, supporting the development of new renewable energy projects.
  4. Validation of InvITs: SEIT’s success in the market is viewed as a pivotal step in establishing and validating InvITs as a sustainable long-term financing channel in India.

AIIB Director General Dongik Lee emphasized the bank’s commitment to green infrastructure and mobilizing private capital to support member countries’ Net Zero targets. The collaboration aims to facilitate private sector participation in financing renewable energy growth, addressing the increasing power demand in emerging markets.

Important Questions Related to Exams

  1. What is the investment amount AIIB injected into India’s largest renewable energy InvIT?
  2. How many operational solar power assets does SEIT, the InvIT, have?
  3. Who are the co-sponsors of SEIT?
  4. What was AIIB’s initial investment focus in India in 2019?
  5. In which month and year did AIIB make its first investment in an Indian InvIT?
  6. What is the total capacity of SEIT’s solar power assets?

Kindly share your responses in the comment section!!


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