Brookfield to Acquire Controlling Stake in Leap Green for USD 550 Million, Plans to Expand Renewable Energy Platform

Major Investment Announcement:

Brookfield Asset Management, a prominent Canadian investor, has committed to investing $550 million (approximately INR 4,594 crore) to acquire a controlling stake in Leap Green Energy, a renewable energy platform based in Tamil Nadu. This platform is focused on providing clean energy solutions to commercial and industrial (C&I) customers. 

Equity Commitment and Future Growth:

Brookfield has pledged an upfront investment exceeding $200 million in equity by subscribing to new shares as well as purchasing from existing investors. Additionally, Brookfield retains an option to inject a further $350 million in incremental equity capital to fuel future growth.

Strategic Partnership and Growth Plans:

Investing through the Brookfield Global Transition Fund I (BGTF I), Brookfield aims to work alongside Leap Green’s current shareholders, including the main investor, US-based The Rohatyn Group (TRG). The goal is to expand Leap Green’s platform to over 3 GW in the next four to five years.

Key Market Focus:

Tamil Nadu, with a growing renewable C&I market projected to reach 20 GW, remains a primary focus area for Leap Green. Brookfield’s investment underscores the importance of this market in their expansion strategy.

Statements from Key Executives:

Nawal Saini, Managing Director — Head of Renewable Power & Transition, South Asia and the Middle East at Brookfield, expressed enthusiasm about the partnership with Leap Green. He highlighted the significant opportunity to meet the demand in the C&I segment and align decarbonization efforts with value creation.

Rajeev Karthikeyan, founder and Managing Director of Leap Green, conveyed his delight in partnering with Brookfield, noting the combined strengths will scale Leap Green to a multibillion-dollar renewable energy and transition platform, with a continued focus on Tamil Nadu.

Brookfield’s Renewable Energy Portfolio:

Brookfield is a leading investor in renewable power, boasting approximately 33 GW of generating capacity and a development pipeline exceeding 155 GW globally.