(Bloomberg) -- Qatar Investment Authority is investing about $450 million for a 25.1% stake in a unit of Adani Transmission Ltd., the Indian company said in a filing Wednesday.

The unit, Adani Electricity Mumbai Ltd., offers power distribution, transmission and generation for more than 3 million customers across Mumbai and handles about 55% of the city’s electricity supply, it said. Under the deal, more than 30% of the subsidiary’s supplied electricity will be sourced from solar and wind power generation by 2023, according to the filing.

The Economic Times reported in September that QIA was in talks to buy up to a quarter of the company and that sale proceeds would be used to aid the utility’s capital expenditures and debt repayment plans.

The deal value includes a subordinated debt investment by QIA, according to the statement, which said the two sides have signed a a definitive agreement.

Adani Transmission Ltd. dropped as much as 4.8% before paring losses to trade down 1% as of 12:44 p.m. in Mumbai

To contact the reporter on this story: Aaron Clark in Tokyo at aclark27@bloomberg.net

To contact the editor responsible for this story: Ramsey Al-Rikabi at ralrikabi@bloomberg.net

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