GIC-backed Greenko weighs US$1b funding round

GREENKO Energy Holdings, one of India's largest renewable energy companies, is looking to raise about US$1 billion from existing investors in a new funding round to bankroll its expansion, according to people familiar with the matter.

The firm has kicked off discussions with shareholders including Singapore's GIC and Abu Dhabi Investment Authority for the fundraising, said the people, who asked not to be identified as the information is private. Greenko, which is valued at about US$6 billion, plans to use the fresh capital to build new energy storage capacity, the people said.

The company aims to finalise the funding round as soon as July, the people said. Deliberations are ongoing and the details of the fundraising including size and usage could still change, the people said. Representatives for ADIA, GIC and Orix declined to comment, while a representative for Greenko wasn't immediately available for comment.

Founded in 2004, the Hyderabad-based company develops solar, wind and hydro power projects with 7.5 gigawatts of operating capacity across 15 states in India. In 2021, Japan's Orix purchased a 21.8 per cent stake in Greenko for about US$961 million.

India has set its sights on slashing reliance on oil and coal as it chases the target of being net-zero carbon by 2070. The country is emerging from an acute power crisis after a blistering summer pushed electricity demand to a record and pressured coal supplies. The cooling weather has provided some relief, but there's concern rains could disrupt coal supplies in the coming months.

French oil giant TotalEnergies and Indian billionaire Gautam Adani's conglomerate this month agreed to team up and fund billions of dollars worth of green hydrogen development in India. As part of the deal, TotalEnergies will buy a 25 per cent stake in Adani New Industries for an undisclosed sum. BLOOMBERG