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Greenko Group plc
15 December 2011
15 December 2011
Greenko Group PLC
("Greenko" or "the Group")
Standard Chartered to invest US$70 million in Greenko
Greenko, the Indian developer, owner and operator of clean energy projects, announces that its subsidiary Greenko Mauritius, has today secured commitment for a US$70 million investment from Standard Chartered (LSE: STAN). The proceeds from this investment will be used to support the development of renewable power projects in Greenko's strong developmental portfolio of 1.6GW dominated by hydro and wind assets.
In June, the Company announced its intention to seek finance at PLC and subsidiary levels in order to become fully funded to 1GW at a competitive cost of capital. Today's agreement with Standard Chartered follows the investment from General Electric Energy Financial Services announced earlier in the year and completes the process at a price which protects shareholders in the short term and enhances value going forward.
Greenko strongly believes that it will benefit from Standard Chartered's strong expertise and ability to deploy its balance sheet through debt solutions into its projects. Greenko will also benefit from Standard Chartered's commitment towards Sustainability of which renewable energy is a key theme. Standard Chartered has demonstrated investment expertise in the renewable space through mobilization of US$ 6.4 billion in debt and equity globally since 2008. This is also the first investment that Standard Chartered has made in the Indian renewables industry.
The investment by Standard Chartered includes a convertible tranche which entitles Standard Chartered to participate in the IPO of any of Greenko's subsidiaries, and under certain conditions provides Standard Chartered with the right to convert this tranche into the Group's main holding company shares at a mutually agreed internal rate of return.
Commenting on the deal, Anil Chalamalasetty, CEO and MD of Greenko, said: "We are delighted to partner with Standard Chartered, a leading global bank with a committed focus on sustainable energy investments. This, coupled with their strong presence in India, could provide us with financing solutions that could greatly enhance the return profile of Greenko's project assets and shareholder value. This announcement represents a further step in establishing Greenko as a leading renewable energy provider in India."
Commenting on the deal, Nainesh Jaisingh, Global Co-Head-Private Equity, Standard Chartered, said: "This investment expands our presence in one of the world's fastest growing power markets with a local and proven renewable energy developer and is in line with our client centric investment philosophy. Standard Chartered intends to support Greenko to propel them into the next stage of their growth. Given the funding profile and requirements of Greenko and the capabilities of Standard Chartered across products and geographies, we believe this will be a growing relationship"
For further information please visit www.greenkogroup.com or call:
Greenko Group plc
Anil Chalamalasetty +91 (0)98 4964 3333
Mahesh Kolli +91 (0)99 4958 6332
Tim Bowen +44 (0)7973 668818
Arden Partners plc +44 (0)20 7614 5917
Tavistock Communications +44 (0)20 7920 3150
Terms of the Investment
The investment by Standard Chartered is drawable within a period of six months and is structured to be part redeemable at a fixed return and part convertible into equity shares at a fixed rate of return.
The convertible tranche entitles Standard Chartered to participate in the IPO of any of Greenko subsidiaries or any intermediate holding company. In the event that an IPO at any of Greenko's subsidiaries is not achieved, Standard Chartered has the right to convert the investment into the Group's main holding company at the mutually agreed internal rate of return.
Standard Chartered will also have the benefit of a facility agreement with the subsidiary, Greenko Mauritius, under which it will have certain minority protection rights, including the right to nominate directors to the subsidiary board.
Greenko is a mainstream participant in the growing Indian energy industry and a market leading owner and operator of clean energy projects in India. The Group is building a de-risked portfolio of wind, hydro electric, natural gas and biomass assets within India and intends to increase the installed capacity it operates by winning concessions to develop new greenfield assets as well as making selective acquisitions that are value accretive to shareholders.
Greenko's portfolio is carefully planned and managed to ensure it offers investors diversification geographically and spreads risks across a number of projects which utilise varied environmental technologies. The Company's goal is to reach 1 GW of operational capacity by 2015. Current operational capacity is 182.6 MW, split between 104.3 MW of hydro, 41.5 MW of biomass and 36.8 MW of gas/liquid fuel. Greenko's portfolio, which includes projects in the development pipeline, currently stands at 1.63 GW.
With a core belief in sustainability both operationally and environmentally, Greenko endeavours to be a responsible business, playing an important role in the community beyond its role in the power generation industry. The Company maintains a continuous involvement in localised projects and community programmes which centre on education, health and wellbeing, environmental stewardship and improving rural infrastructure.
Greenko Group plc was admitted to trading on the AIM market of the London Stock Exchange (LSE: GKO) in November 2007.
About Standard Chartered
Standard Chartered - leading the way in Asia, Africa and the Middle East
Standard Chartered is a leading international banking group. It has operated for over 150 years in some of the world's most dynamic markets and earns more than 90 per cent of its income and profits in Asia, Africa and the Middle East. This geographic focus and commitment to developing deep relationships with clients and customers has driven the Bank's growth in recent years. Standard Chartered PLC is listed on the London and Hong Kong stock exchanges as well as the Bombay and National Stock Exchanges in India.
With 1,700 offices in 70 markets, the Group offers exciting and challenging international career opportunities for around 85,000 staff. It is committed to building a sustainable business over the long term and is trusted worldwide for upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity. Standard Chartered's heritage and values are expressed in its brand promise, 'Here for good'.
For more information please visit www.standardchartered.com
This information is provided by RNS
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