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Greenko Founders Scale Down Orix Stake Buyout Amid Rising Borrowing Costs

Greenko Group founders Anil Chalamalasetty and Mahesh Koll have scaled back their plan to acquire the full 20% stake held by Japan's Orix Corporation in the company’s holding entity. They will now raise Rs5,254.39 crore to purchase a reduced 17.3% stake instead of the initially planned Rs6,839.20 crore for the entire holding. The revised deal, driven by tightened global credit markets and a rise in borrowing costs from 12% to 14%, is expected to close within two weeks.

The financing for the acquisition is being syndicated by Deutsche Bank and Barclays, with likely participation from global funds such as Clifford Capital and BlackRock. This development follows the collapse of an earlier share transfer agreement between Orix and AM Green Power BV, a Greenko founder-owned company. The deal, although cleared by India’s competition authority on March 11, failed to meet lender-related funding conditions by the April 15 deadline, leading Orix to terminate the agreement on April 25.

Orix also put on hold its planned reinvestment through a convertible note in AM Green Luxembourg, the parent company of AM Green Power. The developments reflect the impact of global financial tightening on large-scale renewable energy transactions and strategic investor exits.