Standard Chartered to invest in Greenko (0165U)
December 15 2011 - 2:01AM
UK Regulatory
TIDMGKO TIDMSTAN
RNS Number : 0165U
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
Richard Day
Tavistock Communications +44 (0)20 7920 3150
Matt Ridsdale
Mike Bartlett
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.
About Greenko
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
The company news service from the London Stock Exchange
END
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