The Canadian investment fund Brookfield has made a significant equity investment in Leap Green Energy, a Tamil Nadu-based renewables platform dedicated to providing clean energy solutions for commercial and industrial (C&I) customers. According to a recent press release, Brookfield has secured a majority controlling stake in the company through definitive strategic investment agreements.
Brookfield's upfront commitment includes an equity investment exceeding $200 million, achieved through a mix of subscribing to new shares and acquiring existing shares from current shareholders. Moreover, Brookfield holds the option to inject an additional $350 million in equity capital to fuel the company's future growth.
With this partnership, Brookfield aims to work alongside Leap Green's existing shareholders to enhance the company's capabilities, targeting a platform growth to over 3 GW in capacity within the next four to five years. This investment will be channeled through the Brookfield Global Transition Fund I (BGTF I).
Tamil Nadu presents a significant opportunity for Leap Green, with a rapidly expanding renewable C&I market valued at 20 GW. Nawal Saini, Managing Director and Head of Renewable Power & Transition for South Asia and the Middle East at Brookfield, expressed enthusiasm about the partnership, stating, ?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 decarbonization and value creation are in total alignment.?
Rajeev Karthikeyan, Founder and MD of Leap Green, and Dev Anand Vijayan, Founder and CEO, echoed this sentiment, expressing their excitement about collaborating with Brookfield to scale Leap Green into a multi-billion-dollar renewable energy and transition platform while focusing on their core market in Tamil Nadu.
Brookfield stands as one of the world?s largest renewable power investors, boasting approximately 33 GW of generating capacity and a robust development pipeline of over 155 GW. This partnership marks a pivotal step towards advancing clean energy solutions in India?s burgeoning renewable sector.
