India's ReNew Power to detail on Nasdaq adhering to US$ 8bn handle US SPAC

Feb 26, 2021 10:58 AM ET
  • Independent power producer ReNew Power has consented to go public through a merger with RMG Acquisition Company II, a United States unique objective acquisition firm (SPAC), in an offer that values the combined entity at US$ 8 billion.
India's ReNew Power to detail on Nasdaq adhering to US$ 8bn handle US SPAC
Image: ReNew Power via Twitter.

India-based ReNew claimed the deal will bolster its placement in solar as well as wind generation in its home market by funding medium-term development chances, as well as paying down financial obligation.

The deal, anticipated to close in the 2nd quarter of this year, will certainly be funded with proceeds of US$ 1.2 billion, consisting of US$ 855 million in investments from funds taken care of by BlackRock, BNP Paribas along with Chamath Palihapitiya, a former Facebook executive that last month introduced a financial investment in solar funding team Sunlight Financial in another SPAC offer.

Backed by Goldman Sachs, the Canada Pension Financial Investment Board and Abu Dhabi Financial Investment Authority, to name a few, ReNew Power cases to be the only business in India's renewable resource field with more than 5GW of operational ability. Including capability won in affordable quotes, the firm currently has an accumulated ability of near to 10GW.

Together with a profile of more than 100 functional utility-scale PV as well as wind plants in India, Restore owns as well as operates distributed solar power jobs for over 150 industrial and also commercial customers.

Founder, CEO and chairman Sumant Sinha claimed the firm intends to broaden its capabilities in locations such as utility-scale battery storage. "Over the next years, ReNew strategies to keep its track record of market share development, as well as contribution to the greening of the Indian power industry, as well as to help fulfill the Indian federal government's ambitious renewable resource targets."

The nation is targeting 450GW of mounted renewables capacity by 2030, a five-fold rise on present levels that will certainly require an investment of around US$ 500 billion, according to brand-new research study from the Institute of Power Business Economics and Financial Analysis.

For RMG Purchase Corporation II, a SPAC that was formed for the function of effecting a merging or similar business combination, the announcement follows it increased US$ 345 million in a December 2020 initial public offering.

RMG II CEO Bob Mancini stated ReNew Power "is the best-positioned renewable energy firm in India", adding: "Its dedication to measured growth with lasting collaborations with Indian central and also state government companies, scale, technical development, as well as strong monetary setting should enable Restore to take advantage of the extremely positive patterns in the Indian power market over the next decade and also beyond."

Upon closing of the transaction, the combined company would be called ReNew Energy Global as well as is expected to be noted on the Nasdaq under the ticker icon 'RNW'. Sumant Sinha will remain chairman as well as Chief Executive Officer.

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