Brookfield Makes $200 Mn Investment In Leap Green Energy

Brookfield made an equity investment in Leap Green Energy, a renewable platform based in Tamil Nadu. This investment is focused on providing clean energy solutions to commercial and industrial customers.

Brookfield, a Canada-based alternative investment management company, and Leap Green entered into definitive strategic investment agreements. Under this agreement, Brookfield acquired a majority controlling stake in the company. Brookfield has provided an upfront commitment to make an equity investment of over $200 million in Leap Green, through a combination of subscription of new shares and acquisition of shares from current shareholders.

Additionally, Brookfield has an option to infuse a further $350 million of incremental equity capital to support the future growth of the business. Under the agreement, Brookfield plans to work alongside the company’s existing shareholders. This collaboration aims to enhance the company’s capabilities and grow the platform to over 3 GW over the next four to five years.

Brookfield plans to make this investment through the Brookfield Global Transition Fund I, which is in line with its strategy. Their strategy focuses on bringing investments that can accelerate the global transition to a net-zero carbon economy while delivering strong risk-adjusted returns to investors.

It said that BGTF I’s capital invested in Leap Green can provide impetus to the platform’s growth ambitions in India’s rapidly expanding commercial and Industry (C&I) segment. Tamil Nadu, with a total addressable, growing renewable C&I market of about 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 decarbonization targets of the C&I segment, it said.

Nawal Saini, Managing Director, Head of Renewable Power & 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 decarbonization 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, CEO of Leap Green commented, “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. Our assets, located in North and South America, Europe, and Asia Pacific comprise a diverse technology base of hydro, wind, utility-scale solar, distributed generation, storage, and other renewable technologies. In India, Brookfield’s renewable power and transition portfolio comprises of over 25 GW of wind and solar assets in operation, construction and/or development across leading platforms.