- Press Releases
September 20 (Renewables Now) - US private equity giant KKR & Co (NYSE:KKR) and Indian industrial conglomerate Hero Group have agreed to pour USD 450 million (EUR 451.5m) into the latter’s renewable energy business, the companies said today.
The investment is made through the US group’s Asia Pacific Infrastructure Fund. It will go to Hero Future Energies to support the Indian firm’s expansion in the renewable energy segment and its plan to boost its generation capacity. At present, the company has 1.6 GW of operating solar and wind parks in its independent power producer (IPP) portfolio.
With the cash injection from KKR and its parent, Hero Future Energies will seek to “progressively” grow its wind, utility-scale and rooftop solar capacity and diversify its activities with battery energy storage and green hydrogen production projects. It will also aim to set foot in new markets over time, in line with its goal to grow its renewables fleet across multiple geographies by 2025.
“We look forward to working closely with HFE’s management team and existing investors, including the Hero Group and IFC, to help HFE achieve its next phase of growth and contribute to the energy transition efforts in India and globally,” said Hardik Shah, Partner at KKR.
Hero Future Energies was established in 2012.
A media report about the negotiations for KKR’s investment was released by India’s Economic Times last month. According to the report, the US group was targeting a significant minority stake in the Indian renewable energy firm in what was said to be its single-largest financing transaction in the Indian clean energy sector.
(USD 1.0 = EUR 1.003)