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GIC mulls Greenko stake sale with the help of JPMorgan: Singapore’s sovereign fund GIC is assessing a potential full or partial sale of its 50% stake in India’s Greenko Energy Holdings — backed by the Abu Dhabi Investment Authority (Adia) — with help from JPMorgan Chase, Bloomberg reports, citing people close to the transaction. The transaction could value Greenko at about USD 10 bn, the sources say.
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GIC + Adia have a history with Greenko: GIC and Adia invested a total of USD 230 mn in Greenko back in 2016, Reuters reported at the time. Both investors agreed to channel another USD 329 mn into the company in 2019, following a USD 495 mn investment that year by sovereign wealth funds.
Murky picture: Some investment funds and strategic firms have already shown preliminary interest in the sale, first reported in October, however GIC could choose not to move forward with a sale.
Potential impact: Offloading the size of a stake could impact Greenko’s credit ratings and widen bond spreads, Bloomberg writes, citing a note by Intelligence analyst Sharon Chen released this week. “The impact depends on the profile of the buyer and whether sponsors will continue to fund around 25% of the renewable company’s investments,” Chen said.
About Greenko: Greenko is one of India’s largest renewable energy companies and boasts a net installed capacity of 7.5 GW. The company operates across 15 states in India and aims to decarbonize and decentralize the Indian energy market by providing clean and affordable energy. Greenko is privately owned.
Adia has other Indian energy investments: Adia is also a backer of Indian solar cell manufacturer Premier Energies with a INR 379.5 mn (AED 16.61 mn) investment made in August to acquire a 4.5% stake. Adia also bid for shares in Adani Group and was allocated 2.56% of the 18.2 mn shares reserved for institutional investors worth INR 1.53 bn (USD 18.8 bn).
