GIC, ADIA TO INVEST $450 MN IN GREENKO

wealth funds GIC Holdings Pte Ltd and Abu Dhabi Investment Authority (ADIA) will invest a combined $450 million (around ₹3,000 crore) in Greenko Energy Holdings in one of the largest fund-raising rounds by an Indian clean energy producer.

“The money is being put in by GIC and ADIA and obviously, we will also contribute our portion. Right now, $450 million is coming from these two institutions. We will maintain the shareholding at the same levels,” Greenko Group president and joint managing director Mahesh Kolli said in an interview.

While GIC and ADIA hold 60% and 14%, respectively in Greenko, founders Kolli and Anil Kumar Chalamalasetty, chief executive and managing director, together hold 26% in the company.

Proceeds of the investments will help fund Greenko’s plan to set up India’s first large integrated clean energy storage project along with generation projects totalling 10 gigawatt (GW) at an estimated investment of around ₹50,000 crore.

Mint reported on June 4 that Greenko has agreed to buy Orange Renewable from Singapore’s AT Capital Group at an enterprise value of $1 billion. The equity value of the transaction is about $300 million.

“It (the new funding) is to keep the balance sheet strong for further mergers and acquisitions and primarily support our strategy of supporting roundthe-clock renewable energy,” added Kolli.