Greenko plans to raise up to $4.5 billion for renewable energy projects

Renewable energy major Greenko Group is planning to raise up to $4.5 billion in a mix of equity and debt from local banks. The group will invest the amount in various projects over the next three years.

The group has already received commitments from its shareholders for an equity contribution of $1.3 billion. Its Mauritius arm is looking to raise $750 million via green bonds, which will be used to build storage capacity. “The remaining $2.45 billion will come from the Indian banks, which are keen to invest in green projects, storage and energy transition,” said a banking source, requesting anonymity.

The group is also in separate talks with Canada’s Brookfield Asset Management to sell 10 per cent in the holding company for $1 billion at a valuation of $10 billion. “With the infusion of funds from Brookfield, the company will build storage capacity for renewable energy in India,” said the banking source.

A Brookfield spokesperson declined to comment. An email sent to Greenko did not elicit a response.

The other shareholders are GIC of Singapore, which holds 55.5 per cent, followed by Orix of Japan (22.6 per cent), and the ADIA of Abu Dhabi (13.9 per cent). The rest is held by founders Anil Kumar Chalamalasetty and Mahesh Kolli.

Sources said Greenko Group had 7.5 gigawatt (Gw) of installed capacity across solar, wind and hydropower generation assets in 15 states in India. The focus of the Hyderabad-based company now would be to set up energy storage plants across the country, of which four-five will come up by 2025.

Greenko Renewable Power is a step-down subsidiary of Greenko Power Projects (Mauritius), which, in turn, is a wholly-owned subsidiary of Greenko Energy Holdings (GEH), the holding company of Greenko Group. The first energy storage plant with a capacity of 5.23 Gw is an integrated unit being set up in Kurnool, Andhra Pradesh.

IN THE WORKS

• $1.3 bn from existing shareholders
• $750 mn Mauritius arm looking to raise via green bonds
• $2.45 bn from Indian banks
• $1 bn from Brookfield in separate talks