New Delhi: Canadian asset management firm Brookfield on Thursday announced the acquisition of a majority stake in Tamil Nadu-based renewable energy company Leap Green Energy with an initial investment of over $200 million and an option to inject 350 million more dollars in the future.
"Brookfield and Leap Green recently entered into definitive strategic investment agreements pursuant to which Brookfield acquired a controlling majority interest in the company," the firm said in a statement.
Brookfield has committed in advance to make an equity investment of more than $200 million in Leap Green, through a combination of subscribing for new shares and acquiring shares from existing shareholders.
Additionally, Brookfield has the option to inject another $350 million of incremental equity capital to support future growth of the business.
However, it did not disclose how much equity it acquired in Leap Green Energy.
"Brookfield will work alongside the company's existing shareholders to enhance the company's capabilities and grow the platform to over 3 GW over the next four to five years," the statement said.
Leap Green Energy has a wind and solar asset base of 775 megawatts (MW), including assets in operation and under construction.
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.
Tamil Nadu, with a growing and total addressable renewable commercial and industrial market of 20 GW, is a key target market for Leap Green.
By combining Brookfield's access to capital, acquisitions, operational expertise and Leap Green's in-house development, asset management and customer service capabilities, the company is well positioned to address the C&I segment's decarbonization goals, according to the statement.
"Our partnership provides an important opportunity to meet demand in the C&I segment and deliver results where decarbonization and value creation are fully aligned. We remain committed to helping companies reduce their carbon footprint and positively impact the environment. environment", Nawal Saini, General Director. Director, Head of Renewable Energy and Transition, South Asia and Middle East, Brookfield said.
Brookfield is one of the world's largest investors in renewable energy, with approximately 33 GW of generation capacity and a development pipeline of more than 155 GW.
Its assets, located in North and South America, Europe and Asia Pacific, comprise a diverse technology base of hydro, wind, utility-scale solar, distributed generation, storage and other renewable technologies.
In India, Brookfield's transition and renewable energy portfolio comprises more than 25 GW of wind and solar assets in operation, construction and/or development on leading platforms.
Leap Green, with an existing wind and solar asset base of 775 MW of operational and under-construction assets, has in-house development, O&M and customer management teams.
"Brookfield and Leap Green recently entered into definitive strategic investment agreements pursuant to which Brookfield acquired a controlling majority interest in the company," the firm said in a statement.
Brookfield has committed in advance to make an equity investment of more than $200 million in Leap Green, through a combination of subscribing for new shares and acquiring shares from existing shareholders.
Additionally, Brookfield has the option to inject another $350 million of incremental equity capital to support future growth of the business.
However, it did not disclose how much equity it acquired in Leap Green Energy.
"Brookfield will work alongside the company's existing shareholders to enhance the company's capabilities and grow the platform to over 3 GW over the next four to five years," the statement said.
Leap Green Energy has a wind and solar asset base of 775 megawatts (MW), including assets in operation and under construction.
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.
Tamil Nadu, with a growing and total addressable renewable commercial and industrial market of 20 GW, is a key target market for Leap Green.
By combining Brookfield's access to capital, acquisitions, operational expertise and Leap Green's in-house development, asset management and customer service capabilities, the company is well positioned to address the C&I segment's decarbonization goals, according to the statement.
"Our partnership provides an important opportunity to meet demand in the C&I segment and deliver results where decarbonization and value creation are fully aligned. We remain committed to helping companies reduce their carbon footprint and positively impact the environment. environment", Nawal Saini, General Director. Director, Head of Renewable Energy and Transition, South Asia and Middle East, Brookfield said.
Brookfield is one of the world's largest investors in renewable energy, with approximately 33 GW of generation capacity and a development pipeline of more than 155 GW.
Its assets, located in North and South America, Europe and Asia Pacific, comprise a diverse technology base of hydro, wind, utility-scale solar, distributed generation, storage and other renewable technologies.
In India, Brookfield's transition and renewable energy portfolio comprises more than 25 GW of wind and solar assets in operation, construction and/or development on leading platforms.
Leap Green, with an existing wind and solar asset base of 775 MW of operational and under-construction assets, has in-house development, O&M and customer management teams.
