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GIC, ADIA inject $155m into India’s Greenko Energy

The two sovereign wealth funds are plugging more equity into the Indian renewables developer about six months after it acquired a $392m portfolio of solar assets from SunEdison.

Greenko Energy, an Indian renewable energy developer, has raised $155 million of equity from its two existing sovereign wealth fund investors, Singapore’s GIC and Abu Dhabi Investment Authority. 

GIC is investing $123.9 million through an affiliate while ADIA, via a wholly owned subsidiary, will contribute the remaining $31.1 million, according to a filing by Greenko on the Singapore Exchange. 

GIC said it will remain the majority shareholder of Greenko, a status it acquired by investing £163 million in the formerly London-listed company in October 2015. It injected another $80 million of equity into the firm in June last year, with ADIA signing up for a $150 million equity investment at the same time. 

The funds raised from this round will help Greenko grow its platform and develop new projects, including solar facilities it recently acquired and expansions to its existing wind farms. 

Last September, the company bought a 390MW portfolio of renewable assets in India from defunct US developer SunEdison for $392 million. It now has a utility-scale portfolio of over 2GW of wind, solar and small hydro projects. 

“The transaction further demonstrates Greenko’s continued ability to attract long-term infrastructure capital and commitment from the existing shareholders on business,” Greenko commented on the latest round of capital raising. 

“We have created a strong and sustainable platform to take advantage of evolving energy market dynamics and strong sector fundamentals accelerated by new government initiatives,” noted Anil Kumar Chalamalasetty, chief executive of Greenko. 

ADIA made its debut into India's clean energy sector in October 2015, when it backed developer ReNew Power. Earlier this January, the company secured $390 million in financing from the Asian Development Bank to develop a 709MW renewables portfolio in the country. 

India’s renewables market has attracted around 293 global and domestic companies to date, which have committed to build a combined 266GW of solar, wind, mini-hydro and biomass-based power in India over the next five to 10 years, said the government-run India Brand Equity Foundation. That would “entail an investment of about $310-350 billion”, it added. 

The South Asian country aims to have 175GW of renewable power installed by 2022. That includes 100GW of solar, 60GW of wind, 10GW of biomass and 5GW of small hydro power.