Brookfield Expands India Renewables Portfolio with Acquisition of Leap Green

Canadian investment firm Brookfield Asset Management Inc. has stepped up its presence in India’s renewable energy sector by acquiring a majority stake in Tamil Nadu-based Leap Green Energy.

Brookfield said on Thursday it will invest $200 million in the share capital of Leap Green, a company founded by the family of India’s first Formula One driver, Narain Karthikeyan.

The Canadian company, which is an active investor in the Indian renewable energy, infrastructure and real estate sectors, said it intends to subscribe for new shares and buy back shares from existing shareholders.

Brookfield also has the option to invest an additional $350 million in equity capital to support Leap Green’s expansion. The green energy company aims to expand its capacity to more than 3 GW over the next four to five years.

Leap Green develops renewable energy projects for commercial and industrial clients. It has an existing base of 775 MW of wind and solar assets, both in operation and under construction.

“Our partnership creates an important opportunity to meet demand in the C&I segment and deliver outcomes where decarbonization and value creation are fully aligned,” said Nawal Saini, Managing Director and Head of Renewables and Transformation, South Asia and the Middle East, Brookfield.

The acquisition of Leap Green complements Brookfield’s previous investments in India’s clean energy sector. Last year, the company invested $360 million to acquire a majority stake in renewable energy company CleanMax and invested $1 billion in Avaada Group to help fund the group’s green hydrogen and green ammonia ventures. Additionally, Brookfield partnered with Axis Energy Ventures on renewable energy projects and agreed to invest $845 million.

The latest deal comes as Brookfield raises $5 billion for a new climate-focused fund. Brookfield launched the Catalytic Transition Fund (CTF) in December 2023 in partnership with UAE-based investment firm Alterra, focusing on investing in clean energy and transformational assets in emerging markets.

The first CTF close is expected to occur by the end of 2024. Target markets include South and Central America, South and Southeast Asia, West Asia and Eastern Europe.

Brookfield’s renewable energy and transformation portfolio includes over 25 GW of wind and solar assets in operation, construction and/or development in India. Globally, Brookfield manages over $925 billion of assets across renewable energy and transformation, infrastructure, private equity, real estate and credit.