25 May 2017 – Binding agreements have been entered into whereby Eastspring Investments (“Eastspring”), the US$146 billion Asian investment management arm of Prudential plc, agreed to an investment of an undisclosed amount in Watsun Infrabuild Private Limited (“Company” or “Watsun”), a wholly owned subsidiary of Continuum Wind Energy Limited. The transaction is likely to close by June 2017.
Watsun is constructing a 150 MW wind power project in Tamil Nadu, India comprising 75 advanced Vestas V100 2.0 MW wind turbines to be commissioned in two phases of 54 MW and 96 MW each. The capital invested by Eastspring will be used to fund the construction activities of phase II of the project. Vestas has been maintaining and operating its own nacelle manufacturing facilities and blade factories in India, is well supported by a robust local supply chain and has a high quality R&D centre in India supporting its global operations.
The power from the project will be evacuated through a dedicated 230 kV sub-station and EHV line that connects to a 400 kV TNEB substation at Anikkadavu, Tamil Nadu, that is a part of the high capacity Green Corridor transmission system for renewable energy. Watsun proposes to supply electricity, inter alia, to industrial and commercial units under the group captive scheme. It has already achieved financial closure for phase I and is in advanced discussions with prospective lenders for financing phase II.
With over 240 million people (~20%) without proper access to electricity, reliable supply of power is of high priority to the Government of India. It is also focused on developing renewable energy and has set renewable energy target to reach 175 GW capacity by 2022, further increase it to 275 GW by 2027 and have nearly 60% of electricity capacity from non-fossil fuel.
“We have been impressed by the quality of assets being built by Continuum and their management team. We believe Watsun represents a compelling investment opportunity with its robust business model, experienced promoter, advanced turbines, dedicated substation and quality wind data. Wind farms like this are particularly attractive to long-term investors, such as Eastspring, and we look forward to working closely with the Continuum team to further develop the business elsewhere,” said Tony Adams, the CIO of Infrastructure at Eastspring Investments.
“We are excited about our partnership with Eastspring Investments, which is part of Prudential plc – an international financial services group. In Eastspring, we see a long term and highly experienced infrastructure team which is well versed with the changing dynamics of infrastructure development,” said Arvind Bansal, CEO, Continuum Wind Energy.
“With Eastspring as a long term partner, Continuum is well-positioned to capture the growth in India’s wind energy market. We look forward to working closely with Eastspring and are excited about the prospects for Continuum, our largest investment in emerging markets infrastructure,” said Raja Parthasarathy, MD, Morgan Stanley Infrastructure.
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This document is issued by Eastspring Investments (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission.
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Notes to the Editors:
o3 Capital was the exclusive financial advisor to the above transaction.
About Eastspring Investments
Operating in Asia since 1994, Eastspring Investments is a leading asset manager in Asia that manages assets aggregating to USD 146 billion (as at 31 December 2016) on behalf of institutional and retail clients. Eastspring provides investment solutions across a broad range of asset classes including equities, fixed income, global asset allocation, infrastructure and alternatives.
About Continuum Wind Energy
Continuum Wind Energy is one of India’s leading independent wind power producers with a portfolio of 404 MW of operating capacity, 150 MW under construction, additional 450 MW ready to construct and 1,250 MW under development. It is majority owned by North Haven Infrastructure Partners, a US$ 4 Bn global infrastructure fund managed by Morgan Stanley Infrastructure (MSI), which has made multiple investments in Continuum Wind since 2012. Continuum has a strong execution track record with experience of executing projects in Maharashtra, Gujarat, Madhya Pradesh and Tamil Nadu.
About Watsun Infrabuild Private Limited
Watsun Infrabuild Private Limited (WIPL), a wholly owned subsidiary of Continuum Wind EnergyLimited, is constructing a 150 MW wind power project in in Tirupur and Coimbatore districts of Tamil Nadu, India.
About Morgan Stanley Infrastructure
Morgan Stanley Infrastructure (MSI) is a leading global infrastructure investment platform. The team has a proven and disciplined approach to investing in infrastructure assets globally and seeks to create value through active asset management and by implementing operational improvements. MSI’s team, based in New York, London, Melbourne, Hong Kong, Amsterdam and Mumbai, possesses considerable infrastructure knowledge and leverages its own senior-level relationships as well as the unparalleled global network of Morgan Stanley to source investment opportunities.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 590 investment professionals around the world and $421 billion in assets under management or supervision as of March 31, 2017. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in more than 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com