NEW DELHI: ReNew Power Ventures, an Indian renewable energy specialist company, has sold a 10% stake to Japan’s JERA for $200 million in a deal that values the company at $2 billion, marking Japan’s first entry into India’s renewable energy sector.
The stake sale gains significance against the background of ReNew Power Ventures’ impending initial public offering (IPO).
Goldman Sachs, ADB
ReNew Power now counts Goldman Sachs, Asian Development Bank, Abu Dhabi Investment Authority (ADIA), and JERA among its major investors, CEO and Chairman Sumant Sinha told reporters at a press conference on Tuesday.
“JERA has acquired 10% stake in ReNew Power for $200 million, valuing the company at $2 billion,” Mr Sinha said. “JERA will have one board member and one observer. They have experience managing grids, and with renewable energy becoming more significant in India, grid management becomes even more important.”
JERA is a joint venture between Tokyo Electric Power and Chubu Electric Power.
3.2 GW capacity
ReNew Power has 3.2 GW of capacity, either already installed or announced, of solar and wind energy. It operates across 11 states in India, with none accounting for more than 20% of the installed capacity.
The company has also managed to secure several lines of debt funding, including $390 million from ADB and $250 million from Overseas Private Investment Corporation. “We are in the process of closing a masala bond issue of $425 million soon,” Mr. Sinha added.
“As a ReNew Power shareholder, we will seek to contribute to the company by making available technical, operational, project development, and management experience gained through our global power businesses,” Yuji Kakimi, President of JERA said.
