This will be the third round of capital infusion by the two sponsors, making the total investment in the company to $2 billion.
Hyderabad-based renewable energy firm Greenko has become the biggest recipient of foreign capital in the clean energy space in India, thanks to GIC Holdings Pte Ltd of Singapore and Abu Dhabi Investment Authority (ADIA).
ET reported that GIC and ADIA, the two principal sponsors of Greenko, are investing $550 million of fresh primary capital in the company. This will be the third round of capital infusion by the two.
After this new investment, they would have put a total $2 billion in the 13-year-old company, with GIC, the largest shareholder with a 60 per cent stake, alone infusing $1.4 billion. With $3.2 billion of debt, Greenko’s enterprise valuation will swell to $5.2 billion, according to the daily.
Greenko’s new initiatives
The funds will be used primarily toward Greenko’s new initiatives such as building another 5 GW integrated renewables for round-the-clock supply through energy storage contracts.
The company is also installing three new projects in Andhra Pradesh, Karnataka and Maharashtra by 2021.
The ET report further noted that Greenko will end fiscal 2019 with 4.8 GW of operational renewable assets across wind, solar, hydroelectric power in 13 states and an expected Ebitda (earnings before interest, tax, depreciation and amortisation) of $500 million.
