Brookfield announced an equity investment in Leap Green Energy (“Leap Green” or “Company”), 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 has provided an upfront commitment to make an equity investment of over US$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 further US$350 million of incremental equity capital to support the future growth of the business. Brookfield shall work alongside the Company’s existing shareholders to enhance the Company’s capabilities and grow the platform to in excess of 3 GW 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. Tamil Nadu, with a total addressable, growing renewable C&I market of ~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.
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, and 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.
