Leap Green looks for fund­ing part­ners in China, Ja­pan

Mint ST - - DEALS - Ut­pal Bhaskar ut­[email protected] NEW DELHI

Ja­pan’s Daiwa Se­cu­ri­ties Group Inc. has been hired by Leap Green En­ergy Pvt. Ltd, pro­moted by the fam­ily of for­mer For­mula 1 driver Narain Karthikeyan, to raise funds from China, Ja­pan and South Asian coun­tries for its clean en­ergy busi­ness, said two peo­ple aware of the de­vel­op­ment.

“Daiwa has been ap­pointed by us for a pri­mary fund raise in China, Ja­pan and S.E. Asia,” Ra­jeev Karthikeyan, manag­ing di­rec­tor, Leap Green En­ergy, said in a text mes­sage. Leap Green has op­er­a­tional wind as­sets ca­pac­ity of 751 megawatts (MW) and about 400 MW of un­der con­struc­tion as­sets.

“Leap Green has been look­ing to raise funds,” said an­other per­son aware of the de­vel­op­ment, re­quest­ing anonymity.

In a pri­mary fund raise, the cap­i­tal raised from the mar­ket comes to the com­pany, while in a sec­ondary fund raise the firm or the en­tity that offload its stake gets paid.

In May, The Ro­hatyn Group (TRG), a spe­cial­ized as­set man­age­ment firm fo­cused on emerg­ing mar­kets, ac­quired the Jpmor­gan Asian In­fra­struc­ture and Re­lated Re­sources Op­por­tu­nity (AIRRO) plat­form from Jpmor­gan As­set Man­age­ment, which held about 75% stake in Leap Green En­ergy. JP Mor­gan had ac­quired the stake across mul­ti­ple tranches since 2010.

Leap Green’s ef­fort to raise funds comes at a time when the In­dian re­new­able en­ergy space is wit­ness­ing grow­ing con­sol­i­da­tion, amid fall­ing tar- iffs and the capi- tal-in­ten­sive na­ture of the busi­ness. This has made avail­abil­ity of low-cost funds crit­i­cal for the suc­cess of a project, par­tic­u­larly at the ini­tial stage. In­dia has recorded low so­lar tar­iff of ₹2.44 per unit, mak­ing it im­per­a­tive for de­vel­op­ers to se­cure fi­nance at the low­est cost.

Queries emailed to Daiwa Se­cu­ri­ties Group and The Ro­hatyn Group on 6 Jan­uary and 11 Jan­uary, re­spec­tively, re­mained unan­swered.

Mint had re­ported two large clean-en­ergy deals which are inthe­works: Ptcin­di­altd’s wind power val­ued at around ₹2,000 crore has seen in­ter­est from the In­dian arm of CLP Hold­ings Ltd, Mac­quarie In­fra­struc­ture and Real As­sets (MIRA) and Hero Fu­ture En­er­gies. Also, half-a-dozen in­vestors, in­clud­ing Re­new Power Ven­tures Pvt. Ltd and MIRA, are in­ter­ested in ac­quir­ing the ₹5,000-crore clean en­ergy busi­ness of In­fra­struc­ture Leas­ing and Fi­nan­cial Ser­vices.


Ra­jeev Karthikeyan, manag­ing di­rec­tor, Leap Green En­ergy.

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