Greenko Group: Greenko looks to raise $1 billion via bond issuance

Mumbai: Greenko Group is preparing to raise $1 billion through an offshore bond sale to refinance debt maturing in May 2025, people familiar with the matter told ET. The Hyderabad-based renewable energy firm is set to begin investor roadshows later this month, with the timing and final size of the issuance yet to be determined.

The US dollar-denominated bonds will help the company manage its refinancing obligations which are due later this year as it continues to expand its pumped storage and integrated renewable energy projects across India. Greenko, backed by Singapore’s GIC and Abu Dhabi Investment Authority (ADIA), is focusing on hybrid clean energy solutions.

A company spokesperson did not immediately respond to a request for comment.

Greenko had 5.5 GW of operational renewable energy capacity as of September 2024 and is developing 10 GW of pumped storage capacity across six states, including Andhra Pradesh, Karnataka, and Rajasthan. Its Andhra Pradesh pumped storage project is the most advanced.

The company has installed renewable energy capacity of around 10 GW across wind, solar and hydro capacities with presence in 15 states, projects of 50 GWh of storage are planned to be operational by 2025. Separately, the Greenko founders, Anil Kumar Chalamalasetty and Mahesh Kolli, have raised and deployed over $10 billion; with equity of over $3 billion and global green bonds of over $5 billion over the last 10 years and today produces 18 BU’s (1~1.5%) of India’s total energy production.

Greenko’s refinancing push comes as its promoters seek an $825 million loan to fund a potential buyout of Orix Corp’s 20% stake in the company, sources said. GIC, Greenko’s largest shareholder, is reviewing options to sell its stake. Japanese financial group Orix, which acquired a 21.8% stake in Greenko for $961 million in 2021, is in early stage discussions to exit. In January this year, Orix Group announced that it will sell its entire stake in India’s Greenko Energy Holdings to AM Green Power, a unit of AM Green BV, founded by Greenko’s promoters.