India-based Greenko Energy Holdings, owner and operator of clean energy projects in the country, has completed the acquisition of SunEdison’s 587 MW Indian solar and wind projects for a cash payment of $42 million and the assumption of project-level debt of $350 million (at an average interest rate of 11.3%). The enterprise value of the transaction is approximately $392 million.
According to Mercom Capital’s research, Greenko’s acquisition of SunEdison’s India assets includes 48 MW of wind projects, 214 MW of operational solar projects, 325 MW of solar projects in various stages of development, and 900 MW of pre-construction projects in its pipeline, which it might choose to develop in the future.
“The proposed acquisition of SunEdison’s India assets is expected to immediately accelerate capacity, revenue, EBITDA growth and drive overall earnings growth potential for Greenko and its stakeholders,” says Anil Chalamalasetty, managing director and CEO of Greenko.
The solar projects acquired from SunEdison include the entire operational portfolio in Tamil Nadu, Karnataka, Telangana and Andhra Pradesh, as well as a 1 MW rooftop solar project in Uttar Pradesh, Mercom reports.
According to Mercom’s India Solar Project Tracker, SunEdison’s entire solar portfolio comprised 1,620 MW (393 MW under operation). Out of SunEdison’s portfolio of solar projects in operation, 2.5 MW of rooftop projects have been acquired by Amplus, 177 MW were acquired by Terraform Global, and 214 MW were acquired by Greenko.
This is the second-largest solar project pipeline acquisition in India this year, following Tata Power Renewable Energy’s acquisition of Welspun Renewable Energy’s 1,140 MW renewable energy project pipeline for $1.4 billion, Mercom notes.