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GIC, ADIA to power Greenko again with $550m cheque
Sovereign wealth funds GIC Holdings Pte Ltd of Singapore and Abu Dhabi Investment Authority (ADIA) are investing $550 million of fresh primary capital in Greenko, India’s largest renewable energy firm. 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, said several people with knowledge of the matter. 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% stake, alone infusing $1.4 billion. With $3.2 billion of debt, Greenko’s enterprise valuation will swell to $5.2 billion.
Set up in 2006 by first-generation entrepreneurs Mahesh Kolli and Anil Kumar Chalamalasetty, Greenko will end fiscal 2019 with 4.8 GW of operational renewable assets across wind, solar, hydroelectric power in 13 states and an expected Ebitda (earnings before interest, tax, depreciation and amortisation) of $500 million. The founders own a quarter of Greenko, and ADIA, the remaining 15%.
Greenko and ADIA declined to comment. GIC did not respond to ET's questionnaire.
The funds will be used primarily toward Greenko’s new initiatives such as building another 5 GW integrated renewables for round-the-clock supply through energy storage contracts.