Global Investors compete to invest $250 million in Mahindra InvIT
Global investors including APG, IFC, and AIIB compete to invest $250 million into Mahindra InvIT | Mint Mint
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Sustainable Development Goals (SDGs) in Mahindra Group’s Renewable Energy Business
Introduction
Mahindra Group’s renewable-focused engineering, procurement, and construction (EPC) unit, along with an independent power production (IPP) unit, are part of Mahindra Susten’s businesses, which have a value of about $1 billion, according to sources.
Deal Closure and Due Diligence
A person familiar with the matter stated that the deal is expected to be closed within the next two to three months. Currently, all three global investors are conducting due diligence on the assets that are part of Mahindra InvIT.
Stake Acquisition
The deal will include primary and secondary share sales for a stake of around 35% in Mahindra InvIT, as reported by the source.
Involvement of Domestic Investors
Afterwards, Mahindra Susten plans to bring in domestic investors such as mutual funds or family officers to meet the minimum shareholder requirements.
Current Stakeholder
Currently, the Canadian fund Ontario Teachers’ Pension Plan Board (OTPP) owns about a 30% stake in renewable energy firm Mahindra Susten Pvt. Ltd for an equity value of ₹2,371 crore ($300 million).
Infrastructure Investment Trust (InvIT)
The deal involves the establishment of an infrastructure investment trust (InvIT) in compliance with the regulations of the Securities and Exchange Board of India.
Financial Advisers
Avendus Capital acted as the financial adviser to the Mahindra Group for the transaction, while Ambit was the financial adviser to Ontario Teachers’.
Additional Stake Sale and Fund Deployment
In May 2023, the Mahindra Group and Ontario Teachers’ explored the sale of an additional 9.99% stake in Mahindra Susten. The Group also plans to deploy these funds, along with an incremental amount of up to ₹1,750 crore, into the business and the InvIT over the next seven years.
Conclusion
The Mahindra Group’s renewable energy business is attracting global investors, with a deal expected to be finalized in the coming months. This investment aligns with the Sustainable Development Goals (SDGs) by promoting renewable energy and sustainable infrastructure development.
SDGs, Targets, and Indicators
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 7: Affordable and Clean Energy
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 13: Climate Action
The article discusses the renewable energy business of Mahindra Group and the investment by Ontario Teachers’ Pension Plan Board (OTPP) in Mahindra Susten. These topics are directly related to SDG 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all. The investment in renewable energy also aligns with SDG 9, which focuses on building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation. Additionally, the renewable energy sector contributes to SDG 13 by mitigating climate change through the reduction of greenhouse gas emissions.
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 7.2: Increase the share of renewable energy in the global energy mix.
- SDG 9.4: Upgrade infrastructure and retrofit industries to make them sustainable.
- SDG 13.2: Integrate climate change measures into national policies, strategies, and planning.
The investment in Mahindra Susten’s renewable energy business contributes to SDG 7.2 by increasing the share of renewable energy in the global energy mix. This investment also aligns with SDG 9.4 as it supports the development of sustainable infrastructure in the renewable energy sector. Furthermore, by investing in renewable energy, Mahindra Group and Ontario Teachers’ are integrating climate change measures into their investment strategies, which is in line with SDG 13.2.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Percentage of renewable energy in the global energy mix
- Investment in sustainable infrastructure in the renewable energy sector
- Incorporation of climate change measures in investment strategies
The article does not provide specific indicators, but progress towards the identified targets can be measured by tracking the percentage of renewable energy in the global energy mix. Additionally, the investment in sustainable infrastructure in the renewable energy sector can be measured by monitoring the amount of funding allocated to such projects. The incorporation of climate change measures in investment strategies can be assessed by evaluating the inclusion of environmental, social, and governance (ESG) criteria in investment decisions.
4. Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 7: Affordable and Clean Energy | Increase the share of renewable energy in the global energy mix (SDG 7.2) | Percentage of renewable energy in the global energy mix |
| SDG 9: Industry, Innovation, and Infrastructure | Upgrade infrastructure and retrofit industries to make them sustainable (SDG 9.4) | Investment in sustainable infrastructure in the renewable energy sector |
| SDG 13: Climate Action | Integrate climate change measures into national policies, strategies, and planning (SDG 13.2) | Incorporation of climate change measures in investment strategies |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: livemint.com
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