Hyderabad, Andhra Pradesh-based renewable energy company Greenko Energy Holdings on Tuesday announced that it has raised $495 million in a fresh round of equity based funding from an affiliate of GIC, a government of Singapore-owned investment fund, and Abu Dhabi Investment Authority (ADIA).

The $495 million raised will be invested in 2.4 giga watt (GW) of storage capacity. Post the investment, GIC will continue to remain as the majority shareholder of Greenko.

“Greenko Energy Holdings today announced the signing of definitive agreements for a primary equity raising of US$ 495 million from an affiliate of GIC and an entity that is ultimately wholly-owned by the ADIA,” the company said in a statement.

The development comes at time when Renew Power, an another India-based renewable energy IPP (Independent Power Producer), is reportedly considering raising funds through asset sales, after dropping out its plan for an initial public offering (IPO).

So far, Greenko has now secured equity commitment for two storage projects with total capacity of 2.4 GW, which includes 1.2 GW in Pinnapuram and 1.2 GW in Saundatti. The company expects these projects to become operational in 2022.

In March 2017, the company had raised $155 million (Rs 1,010 crore) from GIC and ADIA, which was one of the largest fund-raising exercises in the renewable energy sector at that time.

Currently, Greenko has an operational capacity of 4.2 GW in the country and another 7 GW is under construction. The company is planning to increase its capacity further through development of greenfield assets.

“These( storage) projects will have overall capital outlay of $2 billion. Greenko has also secured financial closure for the Pinnapuram Storage Project and are in advanced discussions for the Saundatti Project,” Greenko further added in its statement.

Founded in 2004, by Anil Chalamalasetty, Greenko group is listed on the London Stock Exchange's Alternative Investment Market (AIM) and has its asset base in India.

The group has also acquired two renewable energy companies so far and these are -- New Delhi based Orange Renewable, which Greenko acquired for $1 billion, in June last year, and Hyderabad-based Pennar Industries Ltd in August 2017 for an undisclosed amount.

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