KKR Is In Advanced Discussions To Invest $400 Million In Hero Future Energies.

KKR Is In Advanced Discussions To Invest $400 Million In Hero Future Energies.

Hero Future Energies, a subsidiary of Hero Group, is a renewable energy company. The leading US private equity investor KKR & Co. is in advanced negotiations to invest roughly $400 million in the company (HFE).

Business newspaper The Economic Times reported that the sale could be the company’s single largest check in the Indian clean and renewable energy market to date.

According to the source, the last stages of discussions are currently underway in anticipation of an official announcement within the next several weeks. This capital infusion will be used mostly to pay down debt and fuel expansion. The acquisition is being advised by JP Morgan.

This investment makes KKR a co-promoter alongside founder and current CEO Rahul Munjal, however it is for a minority ownership with substantial governance rights. It was also revealed in the study that Munjal is the nephew of Hero MotoCorp’s chairman and CEO, Pawan Kant Munjal.

HFE has 1.5 GW of operational assets and another 1.5 GW in construction across wind, grid-connected solar, rooftop, and energy storage.

The business is planning 500 MW of large-scale, grid-connected solar projects in Europe, Africa, and South Asia. Its goal is to reach 5 GW of capacity by 2024. According to the company’s website, in 2021 HFE sold O2 Power a 49% share in two projects that together generated 500 MW.

KKR’s inaugural Asia Pacific Infrastructure Fund garnered a record-breaking $3.9 billion last year. This year, it doubled down with a $17 billion Global Infrastructure Fund, much exceeding its $12 billion goal from last year.

In May of 2019, the KKR Infrastructure Fund invested $148 million alongside the Government of Singapore’s GIC in Indigrid, an operator of 11 energy transmission assets in India. Five operating solar energy assets were purchased from Shapoorji Pallonji Infrastructure Capital in April 2020.

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