Global investment firm KKR is set to invest more than USD 632.71 million in the Indian renewable energy unit of Malaysian oil giant Petronas, according to people familiar with the matter. The unit, Gentari Renewable India Pte Ltd, has been looking to raise growth capital to fund the expansion of its renewable energy and green hydrogen projects, besides lowering its debt.

The funding will not result directly in the acquisition of a holding in the unit, the people cited said, but it will give KKR the option of owning a stake in the future.

Regulatory filing reveals investment vehicle

A KKR vehicle, Sapphire US Holdco LLC, has sought approval from the Competition Commission of India (CCI) for an investment in Singapore-based Gentari Renewable India Pte Ltd.

Gentari had purchased a 1.6 gigawatt renewable energy portfolio of projects from Brookfield early last year. Shortly after that acquisition, the company sought to induct a financial partner into its renewable energy business, with Standard Chartered Bank engaged by Gentari as an advisor on the process.

"The plan is to grow with the funding from KKR by building on the existing portfolio of projects," said an executive familiar with the development.

Funds to support joint venture acquisitions

The funding will also be used for acquiring stakes that Gentari holds in some renewable energy joint ventures in India, according to the people cited. Gentari has set up a joint venture with ReNew for developing solar, wind, and hybrid power generation infrastructure and has a partnership with AM Green for hydrogen and ammonia production.

Both KKR and Gentari did not respond to queries on the transaction.

KKR's expanding renewables footprint in India

KKR has been eyeing a broader footprint in India's renewable energy sector. The firm already has investments in Hero Future Energy and Serentica Renewables and is also a sponsor of Indigrid, which owns power transmission and renewable energy generation assets.

KKR's infrastructure investment portfolio in India is estimated by experts to be worth USD 10 billion, including investments in data centres and roads. The firm had also been among the top two bidders for Shell's renewable energy company, Sprng Energy, though Aditya Birla eventually outbid KKR to acquire that company for USD 1.8 billion earlier this year.

Surge in renewable energy dealmaking

Fundraising and mergers and acquisitions activity in India's renewable energy sector have accelerated over the past three years, a trend that provides the backdrop for the KKR-Gentari deal. Inox Clean Energy and Sembcorp Green Infra Ltd, the local renewable energy arm of Singapore's Sembcorp Industries, recently filed papers for initial public offerings of shares.

Meanwhile, suitors including Blackstone are pursuing a bid for Actis-owned renewable energy company BluPine. Similarly, Thermax was looking to rope in a partner for its renewable energy business.

The investment by KKR in Gentari Renewable India underscores the growing appetite among global financial investors for Indian clean energy assets, as companies seek growth capital to expand renewable and green hydrogen portfolios in the country.

Transforming the Energy Sector: Stay Ahead of India's Renewable Revolution

Imagine having the ability to monitor every new gas-fired plant, solar farm, and transmission line across India before your competitors even catch wind of it. In a region that is rapidly expanding its power generation capacity, the key to success often lies in who possesses the information first.

⁣The Global Project Tracker (GPT) platform by Blackridge Research provides that crucial edge, tracking energy sector advancements from renewable initiatives to coal phase-out strategies and India's extensive transmission expansion.

Instead of piecing together news fragments and stale databases, you get a single, continuously updated view of the region's energy project pipeline, structured around the milestones that actually matter to your business development team.

• Upcoming Projects

• Tender Notices

• Contract Awards

• Projects Under Construction

• Completed Projects

Book a Free Demo today and see how the Global Project Tracking (GPT) platform by Blackridge Research can put the entire Indian power project landscape at your fingertips.