ReNew Power Sells Rooftop Portfolio

Rhea-AI Summary

ReNew Power has sold a 117 MW/138 MWp rooftop solar portfolio to Fourth Partner Energy for INR 6.72 billion (~$89.9 million). After settling an outstanding debt of INR 1.37 billion (~$18.3 million), ReNew will receive cash proceeds of INR 5.35 billion (~$71.6 million). This transaction is expected to enhance shareholder value and allow for capital reallocation into higher-return projects. However, the sale will reduce the run-rate-adjusted EBITDA by INR 700 - 720 million (~$9.35 – 9.55 million).

Positive

• The sale of rooftop solar portfolio enhances capital discipline and allows for reallocation into higher-return opportunities.
• ReNew expects to record a gain from the asset sale, which could improve financial stability.

Negative

• The run-rate-adjusted EBITDA is expected to decrease by INR 700 - 720 million (~$9.35 – 9.55 million), potentially impacting cash flow.

GURUGRAM, India, Jan. 27, 2022 /PRNewswire/ -- ReNew Power ("ReNew" or "the Company") (NASDAQ: RNW) (NASDAQ: RNWWW), India's leading renewable energy company, today announced that it has sold 117 MW/138 MWp of its distributed rooftop solar portfolio to Fourth Partner Energy, one of India's leading rooftop solar energy companies, for INR 6.72 billion (~$89.9 million).

Fourth Partner is an investee company of TPG and Norfund.

After accounting for an outstanding debt of INR 1.37 billion (~$18.3 million), the cash proceeds from the sale are INR 5.35 billion (~$71.6 million). ReNew expects to record a gain from the deal.

The sale reaffirms ReNew's commitment to creating greater shareholder value through capital reallocation into higher-return opportunities and being more efficient by focusing more on large utility-scale projects. This allows the company to fully leverage its competitive advantages of scale, strong asset management, digital analytics, and financing innovation.

With the sale, the run-rate-adjusted EBITDA for ReNew's total portfolio will be reduced by INR 700 - 720 million (~$9.35 – 9.55 million).

Mr. Sumant Sinha, Chairman and CEO, ReNew Power, said, "Strong capital discipline is a core value for ReNew. This sale illustrates the value that can be released through sale of assets and enhances our ability to capitalize on higher-return opportunities in the near term."

About ReNew:

ReNew is one of the largest renewable energy Independent Power Producers (IPPs) in India and globally. ReNew develops, builds, owns, and operates utility-scale wind and solar energy projects, hydro projects and distributed solar energy projects. As of December 31, 2021, ReNew had a total capacity of 10.3 GW of renewable energy projects across India including commissioned and committed projects. For more information, please visit: www.renewpower.in; Follow ReNew Power on Twitter @ReNew_Power

Note: The INR/US$ exchange rate considered as 74.78. 

View original content:https://www.prnewswire.com/news-releases/renew-power-sells-rooftop-portfolio-301469673.html

SOURCE ReNew Energy Global PLC

FAQ

What is the recent asset sale amount reported by ReNew Power on January 27, 2022?

ReNew Power announced the sale of its rooftop solar portfolio for INR 6.72 billion (~$89.9 million).

How much cash will ReNew Power receive after settling debts from the rooftop portfolio sale?

After accounting for debt of INR 1.37 billion (~$18.3 million), ReNew Power will receive cash proceeds of INR 5.35 billion (~$71.6 million).

What impact will the rooftop solar portfolio sale have on ReNew Power's EBITDA?

The sale is expected to reduce ReNew's run-rate-adjusted EBITDA by INR 700 - 720 million (~$9.35 – 9.55 million).

How does the sale of rooftop solar portfolio align with ReNew Power's business strategy?

The sale reaffirms ReNew's strategy of reallocating capital towards higher-return projects and enhancing operational efficiency.