Masdar invests $150 million in Hero Future Energies

IFC to pump in another $125 million in the company

Abu Dhabi Future Energy Company, Masdar will invest $150 million in Hero Future Energies, the renewable energy arm of BM Munjal Group, to fund its expansion in international markets. This would be followed by another round of strategic investment by International Finance Corporation (IFC) which will pump in $125 million in HFE.

IFC had invested $125 million in HFE in 2017. The company in a public statement said it is hopeful of having as much as 25 per cent of its growth to come from new international markets, including Europe and the UK, and Asia, including Bangladesh, Singapore, Vietnam, Philippines and Indonesia.

This paper recently reported, HFE has rechristened its United Kingdom based unit to be the parent company. Its Indian and Singapore units would now be holding companies (holdcos). With this, HFE has become the first Indian renewable energy company to shift base to another region.

The move is aimed at exposing HFE Global to better financing avenues in the UK and the global market. At the same time, the company plans to use the UK’s trade treaties with several countries especially in African region to expand its base there. It will also now increase its focus on African and South Asian market.

“Hero Future Energies and Masdar are ideal long-term strategic partners. We have clear alignment in our core ambitions. We are committed to advancing the development, commercialisation and deployment of cutting-edge renewable power solutions,” Rahul Munjal, Chairman and Managing Director, HFE said in a public statement.

HFE established in 2012 currently has a portfolio of 1.3GW of wind and solar power and an additional 1.5GW under construction or planned. The Company has a 2022 growth target of 5GW of installed and operating capacity.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said, “At Masdar, through our strategic investment in Hero Future Energies, we are proud to associate our name with one of India’s most iconic brands and to support its further expansion, both in India’s burgeoning renewable energy sector and new geographies.”

Masdar, the renewable energy arm of Mubadala Investment Company, has its footprint of renewable energy projects in more than 25 countries since 2006, representing a combined investment of around US$13.5 billion.