Emerging markets private equity investor Actis and an affiliate of the Government of Singapore Investment Corporation have made an investment each of USD77m in India power developer GVK Energy.
GVK Energy, a wholly owned subsidiary of GVK Power and Infrastructure, is one of the first private sector developers in India.
The funding round enables GVK Energy to further develop, construct and operate power plants in India.
G V Krishna Reddy, chairman, GVK Power and Infrastructure, says: "GVK has been a pioneer in the infrastructure sector in India, having developed India’s first independent power project. Today, we are poised to significantly grow our energy business to meet the growing demand in India. While this strategic transaction will enable GVK Energy to deploy further capital we believe that both Actis and GIC will prove to be ideal partners in the next phase of the company’s growth."
Michael Till, partner and co-head of Actis’s infrastructure business, says: "By investing in such a well-established, highly-respected business as GVK Energy, Actis is helping to secure India’s current and future energy needs. We are delighted to be part of this important investment."
The GVK deal follows Actis’s announcement in April 2010 of a joint venture with Tata Realty and Infrastructure to invest USD200m in Indian road and highway projects.
