- | 2:07 pm
Canada’s Brookfield invests in Tamil Nadu-based Leap Green Energy
Brookfield will make an upfront investment of $200 million and infuse an additional $350 million at a later stage
Canadian asset management firm Brookfield has invested in Leap Green Energy, a Coimbatore, Tamil Nadu-based renewables platform that focuses on providing clean energy solutions to commercial and industrial (C&I) clients, the asset manager said.
Brookfield will make an upfront investment of $200 million through a combination of subscription of new shares, acquisition of shares from current shareholders and incremental equity capital, and infuse an additional $350 million at a later stage.
“We are pleased to partner with Leap Green and look forward to supporting them in their growth ambitions. This investment is in line with our strategy of focusing on platforms that accelerate the global transition to a net-zero carbon economy, while delivering strong risk-adjusted returns to investors,” Brookfield Asset Management managing director Nawal Saini said.
“In India, our renewable power and transition portfolio comprises over 25GW (giga watts) of wind and solar assets in operation, construction and development across leading platforms. This partnership is a continuation of our efforts to match the growing demand in the C&I segment for meeting their decarbonization goals,” Saini added.
“Our investment will support the platform’s growth ambitions in this rapidly expanding segment in India,” Brookfield Asset Management said in a statement.
The investment will be made via the Brookfield Global Transition Fund I (BGTF I), which focuses on transitioning to a net-zero carbon economy while delivering strong risk-adjusted returns, the asset manager said in a media statement. Tamil Nadu’s rapidly growing renewable commercial and industrial market is approximately 20GW, and Leap Green targets this market as a primary target, it said.
Leap Green co-founders Rajeev Karthikeyan and Dev Anand Vijayan said in the statement that “by combining Brookfield’s strengths with the renewables platform’s capabilities, both firms aim to jointly develop a multibillion-dollar renewable and energy transition platform,” focusing on their home state, Tamil Nadu.
The Canadian asset manager is one of the largest investors in renewable power globally. It has around 33GW of generating capacity and a development pipeline exceeding 155GW, with assets spread across North and South America, Europe, Asia Pacific, and hydro, wind, and utility-scale solar technologies.