Orix to Sell $1.3 Billion Stake in Greenko to Founders, Invest $731 Million in Convertible Note.

Orix Corp. will sell a 17.5% stake in Greenko Energy Holdings back to the Indian clean energy producer's founders for $1.28 billion. Orix originally agreed to sell its entire stake in January but terminated the pact in April due to funding issues. The deal includes Orix investing $731 million in a convertible note issued by Greenko's parent company. Orix shares gained 3.3% in Tokyo following the announcement.

Orix Corp. has agreed to sell a 17.5% stake in Greenko Energy Holdings back to the Indian clean energy producer's founders for $1.28 billion. The transaction, which includes Orix investing $731 million in a convertible note issued by Greenko's parent company, marks a significant development in the green energy sector.

The deal comes after Orix originally agreed to sell its entire stake in January but terminated the pact in April due to funding issues. The new agreement, announced on June 19, 2025, sees Orix's shares gain 3.3% in Tokyo following the announcement.

The transaction values Greenko at $7.5 billion and will see the founders, Anil Chalamalasetty and Mahesh Kolli, retain a 28% stake in Greenko Energy Holdings through their personal stakes as well as the stake held by AM Green, their holding company. Sovereign wealth funds GIC Holdings Pte. Ltd. and Abu Dhabi Investment Authority (ADIA) will hold 58% and 14% respectively [2].

The deal is part of Orix's capital recycling strategy, aiming to enhance its portfolio and financial health. Orix's decision to terminate the initial deal in April was due to unmet conditions precedent, according to sources [2].

This transaction follows a trend of strategic investments and acquisitions in the green energy sector, reflecting the growing interest in renewable energy projects. The deal underscores the potential for significant financial returns in the green energy sector, particularly in India, which has ambitious targets for renewable energy capacity.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3SU0L6:0-orix-corp-reenters-into-a-partial-share-transfer-agreement-of-greenko-energy-and-decides-on-new-investment-in-am-green-luxembourg/
[2] https://www.livemint.com/companies/greenko-founders-buy-japan-s-orix-corp-20-stake-in-greenko-energy-holdings-for-1-4-billion-announcement-on-monday-11751206758033.html