Greenko, the Indian developer, owner and operator of clean energy projects, has announced that its subsidiary Greenko Mauritius, has secured commitment for a US$125 million investment from EIG Global Energy Partners, Washington, D.C.
The proceeds from this investment will be used to refinance the Standard Chartered facility of US$70 Million, due in January 2015 and support the development of renewable power projects in Greenko's strong developmental portfolio of 2.2GW dominated by hydro and wind assets.
EIG has been a trusted partner to many prominent companies in the energy sector since 1982 and has invested over US$16 billion spread over 34 countries, with a clear vision that long term success in the energy industry requires understanding, patience and dedication. Greenko believes that it will benefit from EIG's strong expertise in the sector, from its experience investing globally, and from its commitment to sustainability and renewable energy. This is also the first investment that EIG has made in the Indian energy industry.
The investment by EIG is through a long term 6-year instrument with a cash coupon of 5% per annum and a payment-in-kind (PIK) coupon of 6% payable at maturity with an option to convert this PIK into Greenko Group plc Shares at 240p per share. EIG has certain information rights and is eligible for one Board position at the Mauritius level.
R. Blair Thomas, CEO of EIG Global Energy Partners, commented:
We are delighted to have partnered with Greenko Group, which is the leading and most established renewable energy developer and operator in India. India is a high growth energy market with improving macro-economic fundamentals and sustainable power is critical to India's continued success. As such, we couldn't be more pleased to enter this strategic market alongside a company of such stature.
Anil Chalamalasetty, CEO and MD of Greenko, added:
We are delighted to partner with EIG Energy Global Partners. With over 1 GW capacity expected in 2015 supported by our continuous efforts to reduce the cost of debt with the recent Bond Issue and this investment, Greenko is well placed for enhanced shareholder returns.