22/10/2021

Tannochbrae

Built Business Tough

Goldman-backed ReNew Power to list on NASDAQ at $8 billion valuation

Goldman Sachs promoted renewable electrical power generation business ReNew Energy will record on NASDAQ via a business enterprise combination with RMG Acquisition Company II (RMG II). The pro forma consolidated and absolutely diluted organization worth is envisioned to be close to $8 billion.

In a public statement, ReNew declared execution of a definitive agreement with RMG II for a business enterprise combination that would outcome in ReNew starting to be a publicly mentioned business on the NASDAQ.

“Total anticipated proceeds of $1.two billion, comprised of $855 million, upsized, absolutely-fully commited personal placement of frequent stock in ReNew Energy (the “PIPE”) and $345 million of gross income held in have confidence in by RMG II, matter to redemptions anticipated internet most important proceeds of around $610 million to fund the company’s accelerated advancement strategy and fork out down debt,” reported a statement by the business.

RMG II is distinctive goal acquisition business (SPAC) for effecting a merger, stock obtain or similar business enterprise combination with a single or additional companies. The business is sponsored by Riverside Administration Team (“RMG”) and the Administration Team of James Carpenter, Robert Mancini and Philip Kassin.

This is the very first at any time De-SPAC transaction globally involving a renewable electrical power generating business and very first involving an India centered focus on due to the fact 2016.

On closing of the transaction, the combined business would be named ReNew Energy Worldwide PLC and would be publicly mentioned less than the image ‘RNW’. ReNew reported the transaction would help the business by funding medium-phrase advancement possibilities, as effectively as having to pay down debt.

“Over the following 10 years, ReNew ideas to maintain its monitor history of marketplace share advancement, and contribution to the greening of the Indian electrical power sector. In excess of time, we will extend our abilities even even more, with utility-scale battery storage, and buyer targeted clever electricity methods,” reported Sumant Sinha, founder chairman and CEO, ReNew Energy.

ReNew has a short while ago ventured into newer areas these types of as solar producing, electrical power transmission, and electrical power distribution. It a short while ago participated in a tender for privatisation of electrical power distribution in Dadar & Nager Haveli, Daman & Diu. The business also ideas to extend in electricity storage and hydrid electrical power assignments.

Aside from Goldman Sachs, ReNew is backed by fairness investors these types of as Tokyo centered JERA, Abu Dhabi Investment Authority, Canada Pension Prepare Investment Board, and Worldwide Setting Fund. The investors who collectively have 100 for each cent of ReNew currently, will be rolling a bulk of their fairness into the new business, and are envisioned to symbolize around 70 for each cent of the effective business possession upon transaction close.

Goldman Sachs has been seeking to exit from its investment decision for close to two several years. The PIPE listing would also present an straightforward exit route to the current investors, reported a senior marketplace analyst.

“The transaction re-emphasises solid trader curiosity in Indian renewable electricity sector with large advancement probable. The deal noticed participation from some of the world’s major ESG investors and opens the doorway for lots of additional SPAC transactions from India across sectors,” reported Gaurav Singhal, taking care of director, India Investment Banking, Bank of America, which acted as sole fiscal advisor and Guide PIPE Placement Agent to RMG II.

ReNew’s management will continue being intact, with Sumant Sinha as Chairman & Main Government Officer of the combined business. Bob Mancini will be the appointee from RMG II to the Board.

“Our diligence on ReNew confirmed the company’s commitment to measured advancement via prolonged-phrase partnerships with Indian central and condition government companies, scale, technological innovation, and solid fiscal situation must empower ReNew to acquire benefit of the incredibly favourable traits in the Indian electrical power marketplace more than the following 10 years and further than,” reported Bob Mancini, Main Government Officer and Director of RMG II.

The upsized PIPE was anchored by marquee institutional investors which includes money and accounts managed by BlackRock, BNP Paribas Energy Changeover Fund, Mr. Chamath Palihapitiya, Sylebra Funds, TT International Asset Administration Ltd, TT Environmental Answers Fund and Zimmer Companions.