Greenko secures more funds from GIC, ADIA to finance business plan
The Pavgada solar park in Karnataka, India. Photo by: Greenko (www.greenkogroup.com).
Indian renewable energy company Greenko Energy Holdings said on Thursday it has obtained a total equity commitment of USD 824 million (EUR 731m) from its existing shareholders to fund its business plan.
Singaporean sovereign wealth fund GIC Pvt Ltd and the Abu Dhabi Investment Authority (ADIA) have contributed a combined USD 329 million in funds that add to a previously announced raising towards IREP Projects Equity commitment. Last month, the Indian renewables firm said it will receive USD 495 million from the same investors to finance two energy storage projects totalling 2.4 GW, including 1.2 GW in Pinnapuram and 1.2 GW in Saundatti. These assets are seen to be completed in 2022.
On Thursday, Greenko said in a statement that it plans to use the new capital to cover the capital expenditure of IREP projects and also to finance other opportunistic and valuable acquisitions. The company noted that it has also issued warrants to its founders, which, when exercised over the coming months, will provide additional funds. This will be enough to fully fund Greenko’s business plan for the next two years, it added.
As pointed out by its managing director and CEO, Anil Chalamalasetty, Greenko focuses on building integrated renewable energy plants with storage. At present, it has more than 4.2 GW of operational wind, solar and hydropower assets in its portfolio. The company also has over 7 GW under construction.
GIC will continue to be Greenko’s majority owner after the latest transaction.