Greenko founders borrow $650 million to buy back stake from Orix

The loan is one of this year’s largest private credit deals in India, where the market is getting a helping hand from Prime Minister Narendra Modi’s infrastructure push

The founders of Indian clean energy producer Greenko Energy Holdings have signed a $650 million private credit deal they will use to buy back most of Orix Corp.’s stake in the company, according to people familiar with the matter.

They have secured a two-year loan from Keppel Credit, SeaTown Holdings International, BlackRock Inc., Varde Partners Inc., Broad Peak Investment Advisers Pte., Nomura Holdings Inc, and Sumitomo Mitsui Banking Corp., according to the people, who declined to be identified discussing private matters.

The transaction will give co-founders Anil Chalamalasetty and Mahesh Kolli control of an additional 17.5% stake in Greenko, with the deal being done through AM Green Power BV, another entity they set up. Orix will hold on to a 2.5% stake in the Indian company.

The loan is one of this year’s largest private credit deals in India, where the market is getting a helping hand from Prime Minister Narendra Modi’s infrastructure push. Real estate and construction conglomerate Shapoorji Pallonji Group last month completed a $3.4 billion financing, the country’s biggest ever private credit deal.

Greenko and Orix announced the planned deal earlier this year, with the initial target being for AM Green Power to buy the entire 20% stake. But the Japanese company said in April the deal was off, citing funding disagreements. Orix said Monday that it had again agreed to terms.

Orix will also invest about $731 million in a convertible note issued by AM Green (Luxembourg) Sarl, the parent company of AM Green Power BV.

AM Green, Broad Peak and SMBC declined to comment. BlackRock, Keppel, Nomura, SeaTown and Varde didn’t respond to requests for comment.