GIC, ADIA in $230m Indian renewables deal

The funds raised will be used to help Greenko Energy develop new projects, including the expansion of existing wind farms.

Greenko Energy Holdings, the Hyderabad-headquartered renewable energy developer, has secured $230 million in fresh capital from two sovereign wealth funds. 

The Abu Dhabi Investment Authority will invest $150 million in Greenko, while Singapore’s GIC has agreed to invest $80 million, according to a statement.

This will be ADIA’s second Indian renewables deal, following last October's $200 million investment for a significant minority stake in ReNew Power Ventures. Greenko is majority-controlled by GIC, after it bought into the formerly London-listed company for £163 million ($237 million; €209 million) last October. 

Once this transaction is complete, GIC is set to own around 60 percent of Greenko with ADIA holding a 15 percent stake, according to local reports. The remaining will be held by Greenko founders Anil Chalamalasetty and Mahesh Kolli. 

GIC declined to comment on the size of its current stake in Greenko. 

Greenko has an operational portfolio of more than 1GW of wind, hydro, biomass and natural gas power assets. A development pipeline of 1.8GW is scheduled to be ready by the end of 2018. Funds raised from this round will help Greenko develop new renewable energy projects, including low-risk expansions of existing wind farms. The company is also reportedly looking to diversify into the solar sector. 

The government of India has set a target to build 100GW of solar energy, 60GW of wind energy, 10GW of small hydro power and 5GW of biomass-based power capacity by March 2022.