Brookfield invests USD 200 mn for majority stake in Leap Green Energy

New Delhi, Jul 11 (PTI) Canadian asset management firm Brookfield on Thursday announced the acquisition of a majority stake in Tamil Nadu-based renewable energy company Leap Green Energy with an upfront investment of over USD 200 million and an option to infuse USD 350 million more in the future.

“Brookfield and Leap Green recently entered into definitive strategic investment agreements pursuant to which Brookfield has acquired a majority controlling stake in the company,” the firm said in a statement.

Brookfield has provided an upfront commitment to make an equity investment of over USD 200 million in Leap Green, through a combination of subscription of new shares and acquisition of shares from current shareholders.

Additionally, Brookfield has an option to infuse further USD 350 million of incremental equity capital to support the future growth of the business.

It, however, did not disclose how much equity stake it has acquired in Leap Green Energy.

“Brookfield shall work alongside the company’s existing shareholders to enhance the company’s capabilities and grow the platform to in excess of 3 GW over the next four to five years,” the statement said.

Leap Green Energy has an existing wind and solar asset base of 775 megawatts (MW), including running and under-construction assets.

Brookfield’s investment will be made through the Brookfield Global Transition Fund I (BGTF I), in line with its strategy of focusing on investments that accelerate the global transition to a net-zero carbon economy while delivering strong risk-adjusted returns to investors.

Tamil Nadu, with a total addressable, growing renewable commercial and industrial market of 20 GW is a key target market for Leap Green.

By combining Brookfield’s access to capital, procurement, operational expertise, and Leap Green’s in-house development, asset management and customer servicing capabilities, the business is well-positioned to cater to the decarbonization targets of the C&I segment, the statement said.

“Our partnership provides an important opportunity to meet the demand in the C&I segment and deliver outcomes where decarbonization and value creation are in total alignment. We remain committed to helping corporates in reducing their carbon footprint and positively impacting the environment,” Nawal Saini, Managing Director, Head of Renewable Power & Transition, South Asia and the Middle East, Brookfield said.

Brookfield is one of the world’s largest investors in renewable power, with approximately 33 GW of generating capacity and a development pipeline of over 155 GW.

Its assets, located in North and South America, Europe, and Asia Pacific comprise a diverse technology base of hydro, wind, utility-scale solar, distributed generation, storage, and other renewable technologies.

In India, Brookfield’s renewable power and transition portfolio comprises over 25 GW of wind and solar assets in operation, construction and/or development across leading platforms.

Leap Green, with an existing wind and solar asset base of 775 MW of operating and under construction assets, has in house development, O&M and customer management teams.