Greenko Energy founders to raise $800 million fund to buy Orix stake

By Saikat Das 

The founders of Greenko Energy Holdings, one of India’s leading clean energy producers, are raising debt to buy a stake in the company.  

AM Green Power BV, which has ties to Greenko’s founders, plans to raise an $800 million loan to acquire the stake from Japanese financial group Orix Corp., according to people familiar with the matter. 

 

AM Green has appointed two banks, Barclays Plc and Deutsche Bank AG, to arrange the facility, which will be syndicated to the broader market, said the people, who asked not to be identified because the information is private. The loan could have a three-year tenor, the people said.

 

 

The sale also may pose uncertainties to Greenko’s growth plans. Greenko typically relies on equity injections to cover around a quarter of its investments, and AM Green may have less financial ability to support it than Orix, according to Bloomberg Intelligence analyst Sharon Chen.

 

AM Green and Greenko Energy did not immediately reply to Bloomberg emails seeking comment.

 

Orix agreed to sell its 20% stake in Greenko to Netherlands-based AM Green Power for $1.46 billion, the company said in a release Monday. The company was set up by Greenko’s founders to focus on carbon-free molecules. Singapore state investor GIC Pte is the largest owner of Greenko, holding a 58% stake in the company, according to Bloomberg Intelligence.