Greenko inks agreements for $329 million equity funding

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Published: July 13, 2019 1:34:47 AM

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 coming months.

Greenko’s innovative solutions have helped place us at the forefront of the clean energy sector. Greenko’s innovative solutions have helped place us at the forefront of the clean energy sector.

Renewable energy company Greenko Energy Holdings has signed definitive agreements for a primary equity raising of $824 million, which includes a previously announced $495 million raising, for integrated renewable energy projects (IREP) 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. GIC is a global investment firm with over $100 billion in assets under management.

Hyderabad-based Greenko, which has operational capacity of over 4.2 GW, has diversified across wind, solar and hydro projects and has secured a total equity commitment of $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 for IREP projects and also other opportunistic and valuable acquisitions, Anil Chalamalasetty, MD and CEO, Greenko, said in a statement.

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 coming months.

With these proposed investments, the company’s business plan will be fully funded for the next two years.

Greenko 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 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.

“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 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.” he said.

Greenko, with an operational capacity of over 4.2 GW, diversified across wind, solar and hydro projects, has secured equity commitment for two storage projects with a total capacity of 2.4 GW (1.2GW in Pinnapuram and 1.2GW in Saundatti). These projects are expected to be completed and operational in 2022. These projects will have overall capital outlay of $2 billion. The company intends to increase the installed capacity by developing and building new greenfield assets, as well as making selective acquisitions which enhance shareholder value.

Greenko has achieved 4.2 GW of operational portfolio and over 7 GW under-construction capacity and is well funded to grow into a multi-gigawatt portfolio over the next few years.

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