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Brookfield to invest $500m in India’s Leap Green Energy – EQ

Brookfield to invest $500m in India’s Leap Green Energy – EQ


In Short : Brookfield plans to invest $500 million in India’s Leap Green Energy. This significant investment will support the expansion of Leap Green Energy’s renewable energy portfolio, enhancing its capacity and contributing to India’s sustainable energy goals.

In Detail : Canada-based Brookfield Asset Management is set to invest $500m for a controlling interest in Indian renewable energy company Leap Green Energy, Bloomberg has reported.

The deal is likely to result in Brookfield holding a majority stake while the company’s founding family and the Rohatyn Group (TRG) retain the remaining shares.

The investment will bolster Leap Green’s efforts to expand its wind energy capacity in India.

Brookfield will channel the investment through its global transition fund, which recently announced a $10bn initial closure, aimed at supporting clean energy initiatives.

Leap Green Energy, located in Coimbatore in the Indian state of Tamil Nadu, operates 750MW of capacity.

The company’s growth strategy includes scaling up to more than 7GW by 2029. Its energy portfolio encompasses wind, solar, green hydrogen and electric vehicle charging infrastructure.

TRG, a New York-based firm with a focus on emerging markets and real assets, is an existing investor in Leap Green alongside the founding family.

The attraction of global alternative asset managers to India’s clean energy sector is increasing, driven by the country’s economic growth and sustainable energy initiatives.

In March 2024, major investors including Brookfield, Masdar, Gentari, Sembcorp and PSP Investments were in advanced talks to acquire a significant share in Ayana Renewable Power, The Economic Times reported.

The deal could place Ayana’s equity valuation at $1bn, with an enterprise value of $2.5bn to $3bn inclusive of debt.

In October 2023, Australian Origin Energy received an updated takeover bid of $10.6bn (A$16.14bn) from a consortium led by Brookfield and EIG.

But AustralianSuper, which holds a 17.5% stake in Origin, declined the offer, suggesting it undervalues the company.

Anand Gupta Editor - EQ Int'l Media Network