IndiGrid is India’s first ever listed power sector Infrastructure Investment Trust (InvIT). IndiGrid, under the trust framework, is sponsored by Esoteric II Pte. Limited (Esoteric). Its business is managed by an Investment Manager (IM), IndiGrid Investment Managers, a wholly-owned subsidiary of Electron IM Pte. Limited (Electron). Both Esoteric and Electron are affiliates of Kohlberg Kravis Roberts & Co. (KKR). KKR is a leading global investment firm with approximately US$624 billion of assets under management as of September 30, 2024, that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage funds.                                                   

The Project is expected to cost US$76 million. The IFC investment consists of a Non-convertible Debentures (NCD) issuance by IndiGrid (the ‘Issuer’) and the subscription thereof by IFC in an amount of up to US$55 million (INR equivalent). The proposed debt investment will be funded by: (a) IFC for its own account in an amount of up to US$38.5 million; and (b) IFC in its capacity as implementing entity of the Clean Technology Fund (“CTF”) in an amount of up to US$16.5 million. These NCDs will be rated, listed, secured and redeemable, denominated in Indian Rupees.                                                    

The proceeds of this issuance will be used by IndiGrid to finance a 180MW/360MWh capacity standalone Battery Energy Storage System (“BESS”) project in Gujarat (“Project”). IndiGrid won this Project in a competitive bidding (March 2024) conducted by Gujarat Urja Vikas Nigam Ltd. (GUVNL).

No governance risks to expected development impacts are noted.                                                   

This is a Category B project according to IFC's Policy on Environment and Social Sustainability (2012). Based on the information reviewed by IFC, the proposed BESS Project will have few adverse E&S impacts that are limited to the project footprint, site-specific, largely reversible, and can be readily addressed through existing mitigation measures and good international industry practices (GIIP).

Key E&S risks and issues include i) the company's management and monitoring systems to assess and manage E&S risks and impacts from the design, construction, and operations of the project, as well as climate change, ii) battery and electronic component-related supply chain risk management, iii) monitoring and management of fire and explosion risks in the transportation, installation, and operation of the BESS, iv) battery waste and electronic waste management, v) emergency preparedness and response planning, and vi) the company’s stakeholder engagement with the local community and relevant stakeholders, such as its suppliers and GIDC.