CHENNAI: Canadian asset management firm Brookfield on Thursday announced an equity investment of $500 mn 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.
Brookfield and Leap Green recently entered into definitive strategic investment agreements pursuant to which Brookfield has acquired a majority controlling stake in the company.
Brookfield will look to invest over $550 mn in Leap Green, through a combination of subscription of new shares and acquisition of shares from current shareholders and incremental equity capital to support the future growth of the business, as per a release.
Brookfield shall work alongside the company’s existing shareholders to enhance the company’s capabilities and grow the platform to in excess of 3GW 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 focusing on investments that accelerate the global transition to a net-zero carbon economy while delivering strong risk-adjusted returns to investors. 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.
TN, with a total addressable, growing renewable C&I market of over 20GW, 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, MD, head, renewable power & transition, South Asia and the Middle East, Brookfield said, “we remain committed to helping corporates in reducing their carbon footprint and positively impacting the environment.”