ORIX Completes Acquisition of Shares in Major Indian Renewable Energy Operator Greenko
Mar 08, 2021
TOKYO, Japan - March 8, 2021 - ORIX Corporation (“ORIX”) announced today that it has completed its acquisition of shares in Greenko Energy Holdings (“Greenko”) as reported in its September 11, 2020 press release, entitled “ORIX Signs Framework Agreement Regarding Investment in Major Indian Renewable Energy Operator Greenko Energy*1.”
Simultaneous to acquiring issued shares in Greenko , ORIX integrated its entire wind power generation business in India*2 into Greenko in exchange for new additional shares of Greenko. Accordingly, ORIX has acquired approximately 21.8% of Greenko for a total value of approximately 961 million U.S. dollars.
Greenko is one of the two major Indian renewable energy operators; it manages renewable power generation facilities with a total capacity of 6.9GW*3 in operation—including solar, wind, and hydro—and has additional capacity of more than 8GW either under construction or in development. Greenko has long-term power purchase agreements (PPA) averaging over 20 years with India’s government-run agencies, state-owned power companies, and other entities, providing a stable income base while achieving further growth to meet India’s long-term goals of achieving energy sustainability and independence.
ORIX is committed to contributing value to society through its business activities. International expansion of its renewable energy business is a key management strategy in its efforts to realize a sustainable society.
In December 2020, ORIX agreed to acquire Elawan Energy S.L.*4, a global renewable energy business headquartered in Spain. When combined with existing assets, ORIX’s global renewable energy portfolio boasts a total installed generating capacity of approximately 3.3GW (3,300MW) including solar, wind, hydro, geothermal, and other resources. Going forward, ORIX intends to use the experience and expertise it has cultivated to further expand its renewable energy business both within Japan and across the globe.
*1 ORIX Signs Framework Agreement Regarding Investment in Major Indian Renewable Energy Operator Greenko Energy (September 11, 2020)
*2 All shares of the seven Special Purpose Vehicles carrying out wind power generation (with a total facility capacity of 873 MW) in seven states in the southwest of India (total of 26 locations) and one asset management company.
*3 as of February 2021. Including ORIX wind power generation business in India
*4 ORIX to Acquire Elawan Energy S.L., a global renewable energy company headquartered in Spain (December 28, 2020)
Investor Relations and Sustainability Department
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses.
Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile related, real estate and environment and energy related businesses. Since entering Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in 34 countries and regions across the world.
Going forward, ORIX intends to utilize its strengths and expertise, which generate new value, to establish an independent ORIX business model that continues to evolve perpetually. In this way, ORIX will engage in business activities that instill vitality in its companies and workforce, and thereby contribute to society. For more details, please visit our website: https://www.orix.co.jp/grp/en/
(As of September 30, 2020)
Caution Concerning Forward Looking Statements:
These documents May contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results that differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s annual report on Form 20-F filed with the United States Securities and Exchange Commission and under “(4) Risk Factors” of the “1. Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2019 – March 31, 2020.”
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