KKR, a leading global investment firm, and Hero Future Energies
(“HFE” or the “Company”), the renewable energy arm of the Hero
Group, today announced the signing of definitive agreements under
which KKR and the Hero Group will invest $450 million in the
Company. This investment will position HFE for continued growth and
support its efforts to expand its renewable energy capacity and
capabilities across technologies such as solar, wind, battery
storage, and green hydrogen, and into new markets over time.
Through its range of solutions, HFE will also look to support
companies in their efforts to decarbonize and transition towards
sustainable energy sources to achieve their net zero emission
goals.
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Founded in 2012, Hero Future Energies is a leading independent
power producer (“IPP”) in India with a diversified portfolio of 1.6
GW of operating solar and wind projects.
Beyond supporting HFE’s growth, this round of investment led by
KKR will help accelerate India’s energy transition. It advances the
country’s significant effort to expand renewable energy capacity,
reduce carbon emissions by 1 billion tons by 2030 and achieve
net-zero emissions by 2070, as energy demand continues to grow
alongside economic development. Private sector participation,
including from global investors, is expected to be a key enabler
for India to meet these targets, in lockstep with supportive
government policies.1
Hardik Shah, Partner at KKR, said, “Hero Future Energies
is a pioneer in India’s renewables sector, and has a strong track
record of delivering innovative clean energy solutions to support
India’s renewable energy ambitions. HFE’s clean energy solutions
play an important role in helping companies decarbonize as energy
demands continue to grow. We look forward to working closely with
HFE’s management team and existing investors, including the Hero
Group and IFC, to help HFE achieve its next phase of growth and
contribute to the energy transition efforts in India and
globally.”
Rahul Munjal, Chairman & Managing Director of Hero Future
Energies, said, “I am happy to welcome KKR as a strategic
partner in our company to achieve our goal of expanding renewable
energy capacity across multiple geographies by 2025. With this
investment, Hero Future Energies will work to accelerate India’s
energy transition and contribute to the Indian government's target
of generating half the country’s power from non-fossil fuel sources
by 2030.”
Srivatsan Iyer, Global CEO of Hero Future Energies,
added, “KKR’s investment will drive Hero Future Energies’ growth in
the rapidly growing renewable energy markets domestically and
globally, as well as in new technologies such as battery storage,
solar-wind hybrid projects, round-the-clock power, and green
hydrogen, among others. This partnership is also a validation of
our core strengths and capabilities in design and engineering,
development, and project execution, while achieving excellence in
health, safety and environment standards.”
Isabel Chatterton, Asia Pacific Regional Head of
Infrastructure at IFC, said, “IFC is pleased to welcome KKR as
a strategic partner on our longstanding investment in Hero Future
Energies. This investment will enhance the company’s growth plans
both in India and globally, meeting surging energy demands and
mitigating against climate impacts with reliable and affordable
clean energy solutions. Hero Future Energies has been successful in
building a leading renewables platform that will help accelerate
the transition to a sustainable, green economy.”
KKR makes its investment from its Asia Pacific Infrastructure
Fund. The investment in Hero Future Energies builds on KKR’s
extensive experience in India and the renewables sector. Since
2011, KKR has deployed over $15 billion in equity globally to
invest in renewable assets, such as solar and wind, which have an
operational power generation capacity of 23 GW, as of December 31,
2021. In Asia Pacific, KKR sees renewables as core to its
infrastructure strategy and seeks to capture the significant
opportunities across the region. In 2020, KKR set up Virescent
Infrastructure, a renewable energy platform to own and operate
renewable assets in India. In 2022, KKR launched Aster Renewable
Energy, a renewables platform to develop, build and operate solar,
wind, and energy storage projects in Taiwan and Vietnam, with a
view to expand to other markets across the region.
About Hero Future Energies
Established in 2012, Hero Future Energies is present across
multiple states in India, Bangladesh, Vietnam, Singapore, Ukraine
and the UK. The company is an independent power producer (IPP) with
about 1.6 GW of operating assets across utility and commercial
& industrial sectors. The company plans to invest progressively
in grid connected solar and wind, rooftop sectors, energy storage
and green hydrogen over the next few years in India and
internationally.
About KKR
KKR is a leading global investment firm that offers alternative
asset management as well as capital markets and insurance
solutions. KKR aims to generate attractive investment returns by
following a patient and disciplined investment approach, employing
world-class people, and supporting growth in its portfolio
companies and communities. KKR sponsors investment funds that
invest in private equity, credit and real assets and has strategic
partners that manage hedge funds. KKR’s insurance subsidiaries
offer retirement, life, and reinsurance products under the
management of Global Atlantic Financial Group. References to KKR’s
investments may include the activities of its sponsored funds and
insurance subsidiaries. For additional information about KKR &
Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and
on Twitter @KKR_Co.
About IFC
IFC—a member of the World Bank Group—is the largest global
development institution focused on the private sector in emerging
markets. We work in more than 100 countries, using our capital,
expertise, and influence to create markets and opportunities in
developing countries. In fiscal year 2022, IFC committed a record
$32.8 billion to private companies and financial institutions in
developing countries, leveraging the power of the private sector to
end extreme poverty and boost shared prosperity as economies
grapple with the impacts of global compounding crises. For more
information, visit www.ifc.org.
1 Moody’s, June 2022: Policy support and low-cost capital key to
India meeting renewable energy targets
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Media For Hero Future Energies: Dipankar Bose +91 98104
66530 Dipankar.Bose@herofutureenergies.com
For KKR: Wei Jun Ong +65 6922 5813 WeiJun.Ong@kkr.com
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