ORIX Powers Ahead: Greenko Stake Sale and Convertible Bet Signal Strategic Shift

Japanese financial behemoth ORIX Corporation has made a significant capital restructuring action with regard to its Indian renewable energy arm, Greenko Energy Holdings. The firm shall sell part of its holdings in Greenko and subscribe to convertibles, marking a shift in direction to next-generation energy investment.

Strategic Highlights

ORIX will transfer Greenko shares worth about $1.28 billion to AM Green Power B.V., a company established by Greenko promoters.

It will also raise convertible notes of around $731 million from AM Green Luxembourg, the parent company of AM Green Power.

Execution Schedule

The agreement is expected to be closed by the end of July 2025.

Regulatory clearances under India's Competition Act have already been received, overcoming the largest hurdle.

Financial Projections

Despite the huge transaction, ORIX has not adjusted its full-year consolidated financial forecast as yet.

The firm issued a statement that it would announce forthwith any change when required.

Strategic Context

It is a component of ORIX's overall capital recycling plan, which is to transition from conventional renewables to green hydrogen, ammonia and other decarbonization technology.

The investment in AM Green supports world trends towards green energy and positions ORIX for long-term growth in the green molecule arena.

Sources: Reuters, MarketScreener, S&P Global Ratings, ORIX IR News, LiveMint