Orix, a Japanese financial conglomerate, plans to invest around $980 million in Greenko Energy Holdings, an Indian renewable energy company. Orix is set to take a stake of more than 20 per cent in Greenko and the deal is expected to close within this year. This has been one of the largest investments made by the Japanese company overseas as it steps up its investments in clean energy. As per a statement made by the company, Orix will integrate its existing wind energy business, which includes projects of a cumulative 873 MW of capacity, with Geenko.
This will be a part of the transaction in which it will be buying most of its stake from the promoter’s equity, besides a fresh issue of shares. This deal is expected to make Greenko the second most valuable renewable energy firm in the country with a valuation of over $6 billion, after the publicly listed Adani Green Energy. Besides Orix, previous investments in Greenko include those made by sovereign wealth funds GIC Investment of Singapore, and the Abu Dhabi Investment Authority. The two funds have together invested over $2.2 billion in the firm.
Recently, in August 2020, Greenko signed an agreement with NTPC Vidyut Vyapar Nigam for exploring the possibility of entering into an arrangement for trading, collaboration and partnership in integrated renewable energy storage projects set up by Greenko to offer round-the-clock renewable energy power to potential customers in India. Further, Greenko has also signed an agreement with ONYX InSight to retrofit and modernise 500 wind turbines in India. ONYX Insight’s technology will enhance the quality of data retrieved from the wind turbine to improve the analysis.
