Greenko Tends $700 Million In Funding from GIC, ADIA, Orix, and Founders

Greenko

Greenko Energy Holdings is raising about $700 million in primary equity from existing shareholders in one of the largest funding rounds by a domestic clean energy company, according to a person familiar with the development.

Founders of Greenko, Mahesh Kolli, and Anil Kumar Chalamalasetty are also participating in the round, along with Singapore’s GIC Holdings Ltd and Abu Dhabi Investment Authority.

Overview

The convincing arrangements for the primary equity round have been signed, and the funds will be used to fund capital expenditures on pumped storage projects totaling 25 gigatonnes (GWh). Even after the transaction is completed, the shareholding structure will remain unchanged. GIC Holdings Pte. Ltd. The Abu Dhabi Investment Authority owns about 52% and 14% of Hyderabad-based Greenko, respectively, while ORIX Corp. owns 22%. Kolli and Chalamalasetty hold the remaining 12% stake.

Greenko also repaid $435 million in corporate investments made by its subsidiary Greenko Mauritius with a new $425 million loan. Greenko’s $7.5 billion investment includes $2.5 billion in equity. Global green bonds raised $5 billion for the company. GIC, ADIA, and ORIX Corp. representatives declined to comment. Emails sent to a Greenko spokesperson on Thursday evening went unanswered until press time.

End Note

Indian banking storage space, the largest in the world, is expected to be critical to the country’s energy transition goals. The main idea is to store green power in pump storage projects during off-peak hours and release it for consumption when demand increases.

Finance Minister Nirmala Sitharaman stated in her FY24 budget speech that the government is working on a procedural step for pumped storage projects. Around 96 GW of potential capacity for hydro pump storage schemes has been identified.

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