GIC, ADIA Capitalizes $495 Million in Fresh Funding for Greenko's 2.4 GW Power Storage Projects

GIC of Singapore and Abu Dhabi Investment Authority (ADIA) have announced that they are deploying $495 million in fresh equity funding in Greenko.

The fund raising is mainly to expedite 2.4GW of storage projects. These projects, with a total capital outlay of $2 billion, are expected to be completed and operational in the year 2022. These projects will have overall capital outlay of US$ 2 billion. Greenko has also secured financial closure for the Pinnapuram Storage Project and are in advanced discussions for the Saundatti Project. The company has already secured financial closure for the Pinnapuram Storage Project and are in advanced discussions for the Saundatti Project.

“The proposed equity commitment from the existing shareholders shows Greenko’s track record in creating long-term value to all its stakeholders,” said Anil Chalamalasetty, Managing Director and Chief Executive Officer, Greenko.

The Indian energy markets are transitioning from deficit markets to demand-driven contracts, requiring reliable, flexible and cost competitive energy, he said and added Greenko is “focussing in building integrated renewable energy assets with storage to address these markets by competing with conventional energy assets like thermal in quality, quanity and cost.”

This is part of Greenko’s pivot from a generation-focussed company to a more holistic solutions provider striving to feed peak grid demand through clean energy sources. In India, with increase in renewable energy supply from a variety of new sources, existing grid infrastructure cannot absorb more than 15 per cent of supply. Coal, the dominant source of power in the country, cannot satisfy demand that peaks in summer.

GIC will continue to remain the principal shareholder of the company after this fresh round of capital infusion. This will be the third round of capital infusion by the two, making the Hyderabad-based company the biggest recipient of foreign capital in the clean energy space in the country.

After this, the two principal sponsors of the company would have put a total $2 billion in the 13-year-old company, with GIC, the largest shareholder with a 60 per cent stake, alone infusing $1.4 billion. With $3.2 billion of debt, Greenko’s enterprise valuation is expected to be at $5.2 billion.