Brookfield Asset Management may pump $1 billion into Greenko

Brookfield Asset Management is actively considering a $1 billion investment in Hyderabad-based clean energy company Greenko, sources told The Economic Times. The investment could be in Greenko Energy Holdings (GEH) or Greenko Zero C, and would allow both parties to take up decarbonising initiatives.

The total infusion could stretch up to $1.25 billion, the sources added, noting that this would take Greenko’s potential valuation to $9-10 billion — making its India’s second highest valued green energy company.

Moneycontrol could not independently verify the report.

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Brookfield owns, operates, and develops various infrastructure projects, while Greenko’s initiatives include a cloud-based intelligence energy platform, ammonia and green hydrogen for industrial use, and pumped hydro storage infrastructure.

Singapore GIC is a majority shareholder in GEH, with the Abu Dhabi Investment Authority and Japan’s Orix Corporation, and co-founders Mahesh Kolli and Anil Kumar Chalamalasetty holding stocks. Meanwhile, GEH holds 70 percent stake in Greenko Zero C, with the co-founders holding the remaining 30 percent.

The move is being seen as a step forward for Brookfield, which announced a $15 billion fund for its Global Transition Fund — the world’s largest private fund for net zero transition; and put in the largest investor deployment of $2 billion. The Greenko investment is likely to be sourced from this fund, the report added.

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Spokespeople for Greenko and Brookfield did not respond to queries, the report said.

Besides Brookfield, Greenko’s existing investors have also given their nod for a $1 billion rights issue to springboard the company’s expansion plans. The Brookfield investment is likely to be used for long-term growth projects across India.

For Brookfield, the deal provides an opportunity to build on its 4GW renewables portfolio in India by 3x-4x by 2030 and invest in building a domestic large scale supply chain, as indicated by CEO Connor Teskey in media interactions.