PETRONAS Expansion Bid

There has been a bid by Petroliam Nasional Bhd (PETRONAS), an oil and gas company, to increase its portfolio. The Malaysian State-run company looks to invest by procuring an estimated 10% shares in Tata Power Renewable Energy Ltd (TPREL). The company aims at acquiring shares in the Tata Power renewable energy infrastructure investment trust (InvIT), and the move to acquire the stake at TPREL is being documented as a significant step in the plan. This potential minority stake sale in Tata Power Renewable Energy is in addition to PETRONAS’ interest in investing in Tata Power’ renewable energy infrastructure investment trust

InvIT has been the managing entity of infrastructure assets that steadily generate income for its investors and shareholders and offers a liquefied means of investing in infrastructure projects.  TPREL, a subsidiary of the Tata Power Company Ltd, has been a significant player in making investments to produce energy that is not polluted or does not bring about pollution. The mandate to source for investors for the Tata Power renewable energy InvIT has been delegated to Citibank. The project is expected to stock three gigawatts of recyclable energy plans. 

This projected deal is likely to come at a time in the framework of oil moguls whose exploiting chances to diversify and make investments in India’s evolving green economy as the traditional hydrocarbon space experiences technological and coronavirus related interferences. PETRONAS had successfully attained Amplus Energy Solutions Pvt. Ltd in April 2019. The company, one of India’s significant rooftop solar energy creators, earmarked PETRONAS venture in the international clean energy space.

The projected marginal share trade in both TPREL and the InvIT deal arises when the Indian clean energy space’s contracting activity still thrives unaffected by the coronavirus pandemic. Acme Solar Holdings is expected to sell 4.84 gigawatts of projects, one of the major clean energy pacts to take place in India. ORIX Corp, a Japanese-owned company, also made one of the solitary most significant overseas clean energy investments in India by investing $980 million to acquire a 17% stake in Greenko Energy Holdings.

According to the managing director and CEO of Tata Power, the company has been ambitious in targeting renewable, and the company is ready to make new partners raise money for the projects. 

Tata Power has had investment discussion for the InvIT with a few other companies, which include APG Asset Management NV, Actis Llp, Ontario Municipal Employees’ Retirement System (OMERS), Canada Pension Plan Investment Board (CPPIB), and Caisse de depot et placement du Quebec (CDPQ).