The deal is one of the largest funding deals ever by an Indian clean energy producer
The Abu Dhabi Investment Authority (ADIA) has inked an investment deal with India’s largest green energy company, Greenko, to make additional equity investment in the company, Greenko announced on Tuesday.
The move comes soon after ADIA stepped up investments in Indian renewable energy company ReNew Power.
On Tuesday, Greenko announced the signing of agreements with ADIA and Singapore-based sovereign wealth fund GIC to raise $495 million in equity investments in the company.
According to industry sources, Greenko’s equipment investment deals with the two funds was one of the largest funding deals ever by an Indian clean energy producer, valuing the company at approximately $6 billion.
The deal brings the total investments by ADIA and GIC into Greenko to $1.55 billion.
GIC remains the majority shareholder in the company and is said to hold 61 percent, compared to ADIA’s 15 percent. Company founders Mahesh Kolli and Anil Kumar Chalamalasetty own the remaining 24 percent.
Based in Hyderabad, Greenko will use the funds to build two power storage projects with total capacity of 2.4 gigawatts with a combined capital outlay of $2 billion. Proposals call for the projects to be commissioned by 2022.
Last week, Indian media reported that ADIA, along with Goldman Sachs and Canada Pension Plan Investment Board made a combined investment of $300 million in ReNew Power. All three are existing investors in the Gurgaon-based renewable energy company.
Energy industry analysts said that the back-to-back investment deals by ADIA showed that it may be betting big on India’s renewable energy sector, particularly against the backdrop of the newly re-elected government of Narendra modi’s call for uninterrupted and reliable power supplies to Indian households.