Brookfield acquires controlling stake in Leap Green Energy

An initial $200m investment will be made.

Strategic investment agreements were signed between investment firm Brookfield and India’s Leap Green Energy that gives the former majority controlling stake in the renewable energy company.

In a statement, Brookfield said it will make an initial equity investment of over $200m through a combination of subscription of new shares and acquisition of shares from current shareholders. The investment firm also has an option to infuse additional $350m of incremental equity capital to support the future growth of the business. 

The investment will be made through the Brookfield Global Transition Fund I (BGTF I). This will support the company’s growth ambitions in India's rapidly expanding commercial and industrial (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 decarbonisation targets of the C&I segment,” Brookfield said. 

Brookfield will also work with existing shareholders to enhance the independent power producer's capabilities and grow the platform to in excess of 3 gigawatts (GW) over the next four to five years.