Greenko raises $495 million from GIC, ADIA in equity-based funding round

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Renewable energy company Greenko Energy Holdings on Tuesday announced a fresh round of equity based funding from global investment firm GIC, Abu Dhabi Investment Authority (ADIA). The $495 million raised will be invested in 2.4 giga watt (GW) of storage capacity.

“Greenko Energy Holdings today announced the signing of definitive agreements for a primary equity raising of US$ 495 million from an affiliate of GIC and an entity that is ultimately wholly-owned by the ADIA,” the company said in a statement. Post the investment, GIC will continue to remain as the majority shareholder of Greenko.

With this, the company has secured equity commitment for two storage projects with total capacity of 2.4 GW, which includes 1.2 GW in Pinnapuram and 1.2 GW in Saundatti. The company expects these projects to become operational in 2022.

At present, Greenko has an operational capacity of 4.2 GW in the country and another 7 GW is under construction. The company is planning to increase its capacity further through development of greenfield assets.

“These( storage) projects will have overall capital outlay of $2 billion. Greenko has also secured financial closure for the Pinnapuram Storage Project and are in advanced discussions for the Saundatti Project,” Greenko further added in its statement.

In June 2018, GIC and ADIA invested $450 million in the company. “As a long-term investor, we are very pleased to be supporting Greenko’s next phase of growth, which will enhance clean energy offerings and benefit communities in India in the long run,” said Ang Eng Seng, chief investment officer of Infrastructure at GIC.

Greenko intends to increase the installed capacity by developing and building new greenfield assets, as well as, making selective acquisitions which enhance shareholder value. Greenko has achieved 4.2 GW of operational portfolio and over 7 GW under construction capacity and is well funded to grow into a multi gigawatt portfolio over the next few years.

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