UK Climate Investments and Finnish investor Elite Alfred Berg are acquiring interests in four operating solar farms in India totalling 185MW owned by Fortum.
UKCI, a joint venture between the UK government and the Green Investment Group, will take a 40% interest in the portfolio and Elite Alfred Berg 14%, with Finnish utility Fortum retaining 46%.
The projects are located in the states of Rajasthan, Madhya Pradesh and Karnataka.
Fortum will continue to provide operations and maintenance under the terms of the deal.
The transaction, which is expected to close in the third quarter of 2018, will create India's first unlisted 'yieldco' vehicle for international investors, the partners said.
UKCI managing director Richard Abel said: “UKCI is delighted to provide the necessary long-term capital to cornerstone this innovative investment vehicle, helping the continued development of India’s fast-growing renewables sector.”