IndiGrid is India’s first listed power transmission Infrastructure Investment Trust (InvIT). It was established in October 2016 to own and operate power transmission and solar assets in India. IndiGrid currently owns 16 diversified projects (12 operational and 1 under-construction inter-state transmission assets, 1 operational intra-state transmission asset, 1 Regulated Tariff Transmission Project and 2 operational solar assets of 100 MWac capacity), comprising 42 EHV overhead power transmission lines with 7,790 circuit kilometers (ckms) and 12 substations with 14,550 MVA of transformation capacity across 19 states and one union territory.

The Sponsors of the IndiGrid are Esoteric II Pte. Limited (Esoteric) & Sterlite Power Transmission Limited (Sterlite). Esoteric is an affiliate of Kohlberg Kravis Roberts & Co. (KKR). Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with approximately US$459 billion of assets under management as of December 31, 2021, that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage funds.

The proposed investment comprises of a subscription by IFC of up to US$150 million to Non-Convertible Debentures (NCDs) issued by IndiGrid. These NCDs will be rated, listed, secured, redeemable and denominated in Indian Rupees.                                                   

The proceeds will be used by IndiGrid to support its investments or loan infusion in Special Purpose Vehicles (SPVs) that house the following transmission assets which are compliant with IFC’s performance standards (PS). These investments are being used to refinance existing project level debt at these SPVs.

No governance risks to expected development impacts are noted                                                   

This project is Categorized as A according to IFC’s Policy on Environmental and Social Sustainability. The project consisting of 5 operational transmission line assets has  Critical Habitat triggers in certain segments which will need measures to manage critical habitat values to achieve net gain.  In addition, there are outstanding as well ongoing social impacts from the transmission line, including impacts on access to natural resources to IP communities that need to be managed and addressed in line with PS requirements. More specifically, key E&S risks and issues associated with this project include: implementation of environment and social management system (ESMS) and staffing to undertake the project in accordance with IFC PSs; engagement with stakeholders and affected community during project operations, primarily related to health and safety of the landowners and users and access to the right of way; assurance of fair, safe and healthy working conditions for employees and contracted workers and consistent management of occupational health and safety (OHS); ongoing mitigation of any damage to land and assets under the towers and Right of Way, management of biodiversity issues at a few locations across all the lines with longer term monitoring; and culturally appropriate engagement with Indigenous communities wherever the lines pass through IP areas.