Greenko Secures $800 Million Loan to Acquire Orix Stake

Speedy Summary:

• Greenko Energy Holdings founders,Anil Chalamalasetty and Mahesh Kolli,have raised an $800 million private credit loan.
• The loan was primarily sourced from Temasek-backed Clifford Capital and BlackRock to finance their acquisition of Orix Group’s 20% stake in Greenko.
• In January, Orix had agreed to sell its stake to AM Green Power (owned by Greenko founders) for $1.46 billion.
• The financing for the deal carries an interest rate of 11.5-12% and was syndicated by Deutsche Bank and Barclays according to reports from ET on March 9.
• Clifford Capital declined to comment, while requests for responses from BlackRock and Greenko went unanswered.

Indian Opinion Analysis:
This development signifies a major milestone in India’s renewable energy sector as high-value foreign investments continue bolstering Indian companies like Greenko Energy Holdings. By facilitating the acquisition of Orix Group’s stake, significant private credit involvement highlights confidence in India’s clean energy potential amidst rising global demand for lasting solutions. However, the relatively high interest rates (11.5-12%) may pose challenges regarding financial optimization over the long term unless offset by strong operational returns given India’s market dynamics.

Read More: Economic Times