Fortum has signed an agreement to sell the 250 MW Pavagada II and the 250 MW Rajasthan solar power plants in India to Actis, a global infrastructure investment firm. The total consideration from the divestment on a debt and cash-free basis, including the effect of deconsolidating the net debt, is expected to be approximately €280 million. The divestment will be completed and the capital gain recorded in three tranches; during the second half of 2021 and the first half of 2022. The parties have also signed a comprehensive agreement targeting further investments in solar power plants in India.

"This is an important step for Actis as we further strengthen our presence in India building on our achievements to date. We are pleased to be entering into this transaction with a firm of Fortum’s calibre and competence," said Mikael Karlsson, partner and head of Energy Infrastructure at Actis.

Since 2013 Fortum has developed and constructed 680 MW of solar power in India. Over time, most of this capacity has been divested to enable further investments with a limited equity exposure, in line with the build-operate-transfer business model.