The U.S. based SunEdison, Inc., the largest global renewable energy development company, has agreed to sell its Indian portfolio to Hyderabad based Greenko Energy Holdings for $315 million. UK’s private equity company Actis Capital backed renewable platform Ostro Energy Private Limited has supported Greenko to get through this deal. SunEdison had created quite a stir when it introduced its new projects in India in 2014 with huge profit predictions and low tariff bids. However, in April 2016, SunEdison filed for bankruptcy under Chapter 11 in the U.S. Two months later, it hired Rothschild Inc. and McKinsey Recovery & Transformation Services U.S., LLC as advisors for the restructuring process.
This deal, which includes acquisition of SunEdison’s 390MW operational solar park and 48MW of wind parks, is being referred to as the biggest distress sale of all times in the renewable energy sector in India. Greenko also gets the hold of 800MW pipeline at absolutely no additional expenditure. It is believed that $315 million deal includes $30 million equity value and $280 million debt. Greenko, a mainstream participant in the growing Indian energy industry and a market leading owner and operator of clean energy projects in India, is backed by two sovereign fund-backed entities and its current shareholders, Singapore based GIC Private Limited and UAE based The Abu Dhabi Investment Authority. Both these investors will invest another $50-60 million as equity funding in this project.
Greenko which already has its presence in hydro, wind, biogas and natural gas sectors, now also adds solar power to its kitty. Earlier in July 2016, Greenko had lost a bid to acquire solar business of Welspun India Limited. This deal is crucial to Greenko’s business strategy. Not only it has acquired SunEdison’s assets at a cheaper rate, it has also gained access to latter’s southern belt presence in Andhra Pradesh, Tamil Nadu, Karnataka and Telangana. Last month, Greenko had raised $500 million through India’s first high-yield green bond issuance. Prior to that in 2014, it had raised $550 million through an overseas bond sale. In the same year, it had acquired Lanco Infratech Limited’s 70 MW Lanco Budhil hydropower project and two plants of 5 MW each in Himachal Pradesh for Rs 650 crore. The Greenko-SunEdison deal brings a new hope for solar energy – ‘the sunrise industry’ of India.