Petronas eyes stake in Tata Power’s InvIT

Malaysian state oil and gas company Petroliam Nasional Bhd (Petronas) is in active negotiations with the Tata Group to become a key investor in Tata Power planned renewable energy infrastructure investment trust (InvIT) as India’s leading utility looks to unlock value and pare debt, said people aware of the matter.

Tata Power Renewable Energy Ltd (TPREL) is a wholly owned subsidiary of Tata Power Co. Ltd (Tata Power), India’s largest integrated utility company. Tata Power has been looking to raise $500-750 million for its clean energy platform and had initiated discussions with several investors, ETreported on February 9.

Approaches were made to several including KKR, Brookfield, Mubadala, Omers, German financial giant Allianz among many others, said the people in the know. Plans for an InvIT were floated last year, put on ice, then revived. Tatas are open to selling 51% of the InvIT to investors, added the sources mentioned above. If successful, Tata Power will join Larsen & Toubro, Reliance Industries, Sterlite and Piramal Enterprises in creating investment trusts for operational infrastructure assets. ICICI Securities and Citi are advising Tatas.

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