Energy firm Greenko founders get private loan commitments

When closed, the loan will be among the largest private credit deals in India this year, bolstering the country’s reputation as a direct lending hotspot in Asia.

Founders of clean energy producer Greenko Energy Holdings have received commitments from at least five lenders as they seek an $800 million private credit loan for a stake purchase in the firm, people familiar with the matter said.

Anil Chalamalasetty and Mahesh Kolli have received the commitments from Keppel Credit, SeaTown Holdings International, BlackRock Inc., Ares Management Corp., and Nomura Holdings Inc., according to the people who asked not to be identified. The loan would be taken through AM Green Power BV, another entity set up by the founders.

The plan is for AM Green Power to buy a 20% stake for $1.46 billion from Japanese financial group Orix Corp.

When closed, the loan will be among the largest private credit deals in India this year, bolstering the country’s reputation as a direct lending hotspot in Asia.

The credit support provides some stability for Greenko as the firm grapples with the recent purchase of a damaged hydro project and an ownership review by its largest shareholder, as the broader renewable sector in India digests the fallout from US bribery allegations into solar projects.

AM Green Power’s loan deal has two tranches, and is expected to carry low double-digit yields, the people said. The whole facility is 24 months, with a prepayment feature where the smaller tranche can be repaid in nine months, though negotiations are ongoing and terms may change. Barclays Plc and Deutsche Bank AG are arranging the facility, Bloomberg News reported in January.

Singapore’s sovereign wealth fund GIC Pte. is the largest owner of Greenko, holding a 58% stake in the company, according to Bloomberg Intelligence. SeaTown Holdings is a unit of Temasek Holdings Pte, a state-owned Singaporean investment firm.

SeaTown, Keppel Credit, Nomura and Ares declined to comment. Greenko Energy, AM Green Power, and BlackRock didn’t immediately reply to requests for comments.