Renewable energy company Greenko, through its subsidiary Greenko Mauritius, has secured commitment for $125-million investment from EIG Global Energy Partners, Washington D.C.

The company, which trades on AIM market of London Stock Exchange, plans to deploy the proceeds from this recent investment to refinance the Standard Chartered facility of $70 million, due in January 2015 and support the development of renewable power projects in Greenko's development portfolio of 2.2 GW dominated by hydro and wind assets.

Anil Chalamalasetty, CEO and MD of Greenko, in a statement said, “With over 1 GW capacity expected in 2015 supported by our continuous efforts to reduce the cost of debt with the recent bond issue and this investment, Greenko is well placed for enhanced shareholder returns.”

EIG has partnered many companies in the energy sector since 1982 and has invested over $16 billion spread over 34 countries.

Greenko believes that it will benefit from EIG's strong expertise in the sector from its experience investing globally, and from its commitment to sustainability and renewable energy. This is also the first investment that EIG has made in the Indian energy industry.

The investment by EIG is through a long term six-year instrument with a cash coupon of 5 per cent per annum and a payment-in-kind coupon of 6 per cent payable at maturity with an option to convert this into Greenko Group shares. EIG is eligible for one board position at the Mauritius level.

R Blair Thomas, CEO of EIG Global Energy Partners, said: “India is a high growth energy market with improving macro-economic fundamentals and sustainable power is critical to India's continued success.”

Macquarie Capital advised on the transaction.

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