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Greenko Energy raises $329 mn more from GIC, ADIA
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Renewable energy major Greenko Energy Holdings has raised an additional $329 million (Rs 2,255 crore) from existing investors GIC and Abu Dhabi Investment Authority (ADIA).

Singapore sovereign wealth fund GIC will remain as the majority shareholder of Greenko after the investment, the renewable energy company said in a statement.

Hyderabad-based Greenko said the fresh investment will ensure its business plan is fully funded for the next two years. The company will use the funds to finance the capital expenditure of renewable energy projects and look for acquisitions.

The investment is part of a primary equity fundraise of $824 million, which includes the previously announced $495 million that Greenko mopped up from GIC and ADIA in June.

As part of the fundraising plan, Greenko has also issued warrants to its founders. This will bring in additional equity for the company’s growth when the warrants are exercised in coming months.

“Greenko is focused on building integrated renewable energy assets with storage to address these markets by competing with conventional energy assets like thermal in quality, quantity and cost,” said Anil Chalamalasetty, managing director and chief executive officer, Greenko.

In the past, the company had received more than $800 million in funding from GIC and ADIA. It received $447 million in June 2018, mobilised $155 million in 2017 and about $230 million the year before.

Greenko has operational capacity of more than 4.2 gigawatts across wind, solar and hydro projects. It has also struck a few acquisitions to expand its business. These include the acquisitions of AT Capital-backed Orange Renewable and Skeiron Green Renewables last year. Greenko said at the time the two acquisitions would add about 1,300 megawatts of operating and near-completion wind and solar assets.

India’s renewable energy sector has been a favourite of private equity-style investors over the past few years, as the South Asian economy looks to boost clean-energy generation and reduce reliance on coal.

Apart from Greenko, ReNew Power Ltd is another major renewable energy company that has raised a significant amount of capital from investors. ReNew is also backed by ADIA, the sovereign wealth fund of Abu Dhabi. Its other investors include Goldman Sachs, Canada Pension Plan Investment Board and Japan’s JERA Inc.

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