Greenko has announced the signing of definitive agreements for a primary equity funding of $824 million from an affiliate of GIC and by the ADIA
Hyderabad-based Greenko Energy Holdings, one of India’s leading renewable energy companies, has announced the signing of definitive agreements for a primary equity funding of US$ 824 million, which includes a previously announced $495 million raising towards IREP Projects Equity commitment, from an affiliate of GIC and by the Abu Dhabi Investment Authority (ADIA). Post the investment, GIC will continue to remain as the majority shareholder of Greenko.
Greenko, which has an operational capacity of over 4.2 GW (DC Capacity of 4.7 GW) diversified across wind, solar and hydro projects, has secured a total equity commitment of US$824 million from its existing shareholders subject to meeting certain conditions. The new capital will be used to fund its business plan, which includes the capex of IREP projects and also other opportunistic and valuable acquisitions. Greenko has also issued warrants to its founders, which will bring in additional equity for the growth of the company when they are exercised over the coming months. With these proposed investments the company’s business plan will be fully funded for the next two years.
“The proposed equity commitment from the existing shareholders shows Greenko’s impeccable track record in creating long-term value to all its stakeholders. Greenko’s innovative solutions have helped to place us at the forefront of the clean energy sector. Indian energy markets are transitioning from deficit markets to demand-driven contracts, requiring reliable, flexible and cost competitive energy. Greenko is focused on building Integrated renewable energy assets with storage to address these markets by competing with conventional energy assets like thermal in quality, quantity and cost.” said Anil Chalamalasetty, Managing Director and Chief Executive Officer, Greenko.
The company continues to scale up on its innovation and digitisation efforts in the power sector – working towards transforming renewable energy to reliable, schedulable and flexible energy through forecasting and digitisation, building an intelligent energy utility platform as round-the-clock (RTC) flexible renewable power is expected to replace fossil fuels. Greenko’s investment in storage projects is the first step towards this direction and is expected to deliver over 15 billion units of schedulable power generation.
“We believe the combination of our existing hydro, solar and wind projects and our 24/7 Renewable Power Strategy to help Indian power distribution companies is the right step in our growth trajectory,” the company issued in its statement.