Eastspring Investments (Eastspring) will make an undisclosed investment in Watsun Infrabuild, a wholly owned subsidiary of Continuum Wind Energy.
The $146-billion Asian investment management arm of Prudential plc has signed a binding agreement and the transaction is likely to be completed by June 2017.
Watsun is constructing 150-megawatt (Mw) wind power projects in Tirupur and Coimbatore districts of Tamil Nadu. The capital invested by Eastspring will be used to fund the construction activities of the second phase of the project.
The power from the project will be evacuated through a dedicated 230-kilovolt (kV) substation and extra-high-voltage (EHV) line that connects to a 400-kV Tamil Nadu Electricity Board (TNEB) substation in Anikkadavu. This is 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.
"Wind farms like this are particularly attractive to long-term investors like Eastspring and we look forward to working closely with the Continuum team to further develop the business elsewhere," said Tony Adams, chief information officer of infrastructure at Eastspring Investments.
"With Eastspring as a long-term partner, Continuum is well positioned to capture 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, managing director, Morgan Stanley Infrastructure.
Continuum Wind Energy is an independent wind power producer 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.
North Haven Infrastructure Partners, a $4-billion global infrastructure fund managed by Morgan Stanley Infrastructure (MSI), which has made multiple investments in Continuum Wind since 2012, is a major investor in the company.
Continuum has executed projects in Maharashtra, Gujarat, Madhya Pradesh and Tamil Nadu.