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Greenko Group plc
28 March 2012
EMBARGOED UNTIL 07.00 WEDNESDAY 28th March 2012
Greenko Group PLC
("Greenko", "the Company" or "the Group")
ACQUISITION OF 56MW OF ADDITIONAL HYDRO ASSETS
Greenko, the Indian developer, owner and operator of clean energy projects, is pleased to announce today the acquisition, subject to certain conditions, of two additional hydro power assets, one cluster of 32MW which is operational and the other of 24MW currently under development. The total consideration is EUR42.7 million and will be funded from a mix of existing cash reserves and project debt already in place. The Group's operational portfolio is now 214.6MW out of a total 1.67GW portfolio of diversified clean energy assets, of which over 450MW is under construction.
The 32MW asset cluster is located in the Northern Indian state of Himachal Pradesh on the edge of the Himalayan Mountains. It consists of four 5MW plants and one 12MW plant. All power produced from the plants is sold under long term Power Purchase Agreements ("PPA's") to the local state electricity board. The average Plant Load Factor ("PLF") for the combined asset is expected to be in excess of 60%. As a whole, the Himachal Pradesh asset has a strong hydrology profile with diverse water catchment sources including snow, rain and glaciers as a result of its position at the base of the Himalayan Mountains.
The 24MW project is in the Southern Indian state of Karnataka and is currently under development with completion targeted in 2014. All project approvals have been obtained and construction is due to start after the 2012 monsoon which typically runs from June to September. The surrounding terrain is part of an existing Greenko cluster where the Company is already developing and operating hydro plants, allowing resources already present to be employed for this newproject. Karnataka has a reliable hydrology profile supported by long term data analysis, and the new project will benefit from the monsoon season with an anticipated PLF of approximately 30%.
Whilst bolt-on acquisitions of existing wind projects are unlikely because of Greenko's differentiated strategy in that asset class, the Board believe there are opportunities to add to the hydro portfolio via acquisitions and will continue to evaluate opportunities on a case-by-case basis. Where there is a strong investment case to do so, Greenko may acquire additional hydro assets which are either already operational or at an advanced developmental stage.
Commenting on the acquisitions, Anil Chalamalasetty, CEO and MD of Greenko, said: "We have a strong record of generating profits from our existing hydro assets. Greenko is now the largest operator and developer of small hydro assets in India. These are the most attractive and sustainable assets for an Indian energy market that is characterized by high demand and constraints in base load fuel supply and potentially volatile offtake markets. These additions to our portfolio are in line with the Group's targeted operational capacity of 1GW by 2015.
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
Vasudeva Rao +91 (0)99 5961 7442
Tim Bowen +44 (0)7973 668818
Arden Partners plc
Richard Day / Adrian Trimmings +44 (0)20 7614 5917
Tavistock Communications +44 (0)20 7920 3150
Matt Ridsdale / Mike Bartlett
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 which enhance shareholder value.
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 214.6 MW, split between 136.3 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 1.67 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.
This information is provided by RNS
The company news service from the London Stock Exchange