Brookfield announces strategic investment in TN-based Leap Green Energy

Brookfield and Leap Green recently entered into definitive strategic investment agreements pursuant to which Brookfield has acquired a majority controlling stake in the company

Canadian asset management firm Brookfield on Thursday announced an equity investment of $550 million in Leap Green Energy, a renewables platform based in Tamil Nadu and focused on providing clean energy solutions to commercial and industrial (C&I) customers.

Out of the total amount, the firm has made upfront commitment of $200 million. Rest $350 million will be infused in the future to support the future growth of the business.

Brookfield has said it owns controlling stake in the company.

The investment will be made through a combination of subscription of new shares and acquisition of shares from current shareholders and incremental equity capital.

 

Brookfield shall work alongside the company’s existing shareholders to enhance the company’s capabilities and grow the platform to in excess of 3 giga watt (GW) over the next four to five years.

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

BGTF I’s capital invested in Leap Green shall provide impetus to the platform’s growth ambitions in India’s rapidly expanding C&I segment.

Tamil Nadu, with a total addressable, growing renewable C&I 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 decarbonisation targets of the C&I segment.

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

Rajeev Karthikeyan, Founder and MD of Leap Green, and Dev Anand Vijayan Founder, and CEO of Leap Green said in a statement, “We are delighted to partner with Brookfield, a global leader in the energy transition space, to combine their strengths with our own capabilities and scale Leap Green to a multibillion dollar renewable and energy transition platform, while retaining a focus on our home market of Tamil Nadu.”

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.

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.

Talking point

- In India, Brookfield’s renewable power and transition portfolio comprises over 25 Gw of wind and solar assets

- Leap Green Energy has an existing wind and solar asset base of 775 Mw of operating and under construction assets

- Brookfield to grow the platform in excess of 3 Gw over the next four to five years

- Brookfield’s investment to be made through the Brookfield Global Transition Fund I in line with its strategy to accelerate the global transition to a net-zero carbon economy