Orix Agrees to Invest USD 980 Million to Acquire a Significant Minority Stake in Greenko

Adds ORIX’s 873 MW of operating wind assets to Greenko’s portfolio, taking near-term capacity to 6.5 GW

Expected to be immediately accretive to Greenko’s EBITDA upon closing with about USD 100 million EBITDA in first full year

PVTIME - ORIX (TSE: 8591; NYSE: IX) has entered into a definitive framework agreement to make an investment of at least USD 980 million to acquire shares in Greenko Energy Holdings (Greenko) through a combination of primary and secondary transactions, valuing Greenko equity at about USD 5.75 billion. ORIX will acquire at least 20 percent of Greenko’s issued shares at closing. ORIX’s exact and ongoing shareholding and investment amount may change as a result of transaction adjustments, exchange rates and future capital infusions. The investment further solidifies the Company’s shareholder base, comprising long-term investors such as GIC and a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA), and strengthens the Company’s position as a global leader in the provision of long-term, least-cost renewable energy. In addition, ORIX’s 873 megawatts (MW) of operating wind assets in India will be acquired by Greenko and will be subject to customary regulatory approvals and certain conditions.

This will increase Greenko’s overall
operational capacity to about 6.5 gigawatts (GW). The total includes the
recently announced acquisition of a 1.2 GW hydro asset and adds to Greenko’s
growing, well diversified and de-risked portfolio of wind, solar and hydro
assets. Greenko has additional under construction capacity of over 8 GW,
largely from its Integrated Renewable Energy Projects (IREP) which began
construction earlier this year. IREP will take Greenko’s total operating
capacity to about 14.5 GW once completed, confirming its leadership position in
the Indian new energy Sector. The acquisition of ORIX’s wind assets will add
approximately USD 100 million to Greenko’s EBITDA in the first full year after
close.

Greenko believes the combination of its
existing hydro, solar and wind projects with a strategy of 24/7 Schedulable
Renewable Power On-Demand (SPOD) and renewable power supply during peak hours
to help Indian power distribution companies is the right next step in its
growth trajectory. Greenko has received permits to build and operate multiple
Integrated Energy Storage Projects across five States in India with an overall
daily and seasonal storage capacity of ~40 GwH. Greenko’s Intelligent Energy Platform
aims to deliver the lowest cost and reliable energy models to overcome the
challenges posed by fast growing renewables to grids and utilities, enabling
acceleration of India’s decarbonization goals to 50% of energy by 2030.

“We welcome ORIX as a long-term partner.
The transaction will further drive capacity, revenue, EBITDA and overall
earnings growth for Greenko and our stakeholders. Indian energy markets are
transitioning from deficit markets to demand-driven contracts requiring
reliable, flexible and cost competitive energy. Greenko is focused on building
IREP with storage, which can compete with conventional energy assets like
thermal in quality, quantity and cost.” said Anil Chalamalasetty, Managing
Director and Chief Executive Officer, Greenko.

“We are excited to partner with Greenko
through this investment, which represents a very important step for us in
accelerating our corporate strategy of contributing to build a sustainable
society” said Mr. Hidetake Takahashi, Head of Energy and Eco Services Business
Headquarters of ORIX. “Greenko is a leading renewable platform in India which
has become one of the largest renewable markets in the world. We are very
impressed by Greenko’s competitive and differentiated strategy to provide
renewable energy as clean, reliable and flexible power. We are looking forward
to working alongside the Company’s existing shareholders and its world-class
leadership team and founders to create a more sustainable future. Integrating
our wind portfolio into Greenko and becoming a substantial minority shareholder
supports the Company’s growth strategy.”

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