ReNew Power, the India-based renewable energy provider that counts energy utilities Chubu Electric Power and Tokyo Electric Power as investors, has raised $300m from existing backers.
Investment banking firm Goldman Sachs, pension asset manager Canada Pension Plan Investment Board and Abu Dhabi Investment Authority (ADIA), the emirate of Abu Dhabi’s sovereign wealth fund, each provided $100m of the capital.
Founded in 2011, ReNew runs a 4 GW portfolio of solar power plants and wind farms in its home country, with a further 3 GW of projects under development.
Sumant Sinha, ReNew’s chairman and managing director, said: “The rights issue will enable our existing investors to deepen their investment in ReNew reflecting their continued faith in the Indian renewable energy market. The proceeds of the issue will be used primarily as capex for our existing pipeline of projects”
The company secured the funding, which was provided in the form of compulsorily convertible preference shares, following $350m in debt financing from the US government-owned Overseas Private Investment Corp in February 2019, and a $375m green bond issue that was completed in March.
The company’s first funding came in the form of a $200m investment by Goldman Sachs in 2011, before it added $140m from Goldman Sachs, Asian Development Bank (ADB) and asset manager Global Environment Fund three years later.
ReNew received an additional $265m in funding from Goldman Sachs, Global Environment Fund and an ADIA subsidiary in 2015.
ADB supplied $390m in debt financing for the company in January 2017, before Jera, the joint venture formed by Chubu Electric and Tokyo Electric, invested $200m a few weeks later at a valuation of $2bn.
Canada Pension Plan Investment Board acquired a 6.3% stake in ReNew in return for $144m in January 2018. The company had reportedly been preparing for an initial public offering that was tentatively set to take place later that year, but has not yet filed to go public.
