Canada’s Brookfield has acquired a majority stake in Tamil Nadu-based renewable energy company Leap Green Energy for an investment of $200 million through a combination of subscription of new shares and acquisition of shares from current shareholders.
Additionally, Brookfield can infuse a further $350 million of incremental equity capital to support the future growth of the business, the firm said in a statement on Thursday.
Brookfield’s investment will be made through the Brookfield Global Transition Fund I (BGTF I), in line with its strategy of focusing on investments that accelerate the global transition to a net-zero carbon economy while delivering strong risk-adjusted returns to investors.
By combining Brookfield’s access to capital, procurement, operational expertise, and Leap Green’s in-house development, asset management and customer servicing capabilities, the business is well-positioned to cater to the decarbonisation targets of the C&I segment.
With about 33 GW of generating capacity and a development pipeline of over 155 GW, Brookfield is part of Brookfield Asset Management, which has over $925 billion of assets under management across renewable power and transition, infrastructure, private equity, real estate, and credit.
Leap Green Energy’s funding follows several other investments in the renewable energy sector of India and evidences the rising interest of investors in the industry.
In April, Avaada Energy, the renewable energy arm of India’s Avaada Group, closed $535 million (Rs 4,471 crore) in refinancing from the state-owned National Bank for Financing Infrastructure and Development (NaBFID).
Separately, the International Finance Corporation (IFC), a member of the World Bank Group, said it is considering a $125-million equity investment in Indian solar panel provider Fourth Partner Energy, according to a disclosure.
Previously, GPS Renewables, India’s full-stack technology firm focused on clean fuels, raised $50 million in debt financing from private and public sector banks and NBFCs.
Separately, tech-to-tractor conglomerate Mahindra Group will invest Rs 1,200 crore (about $144 million) to set up solar and wind energy projects of 150 megawatt (MW) hybrid capacity in India, it said recently.
