2019-11-11 / HFE

Strategic investment of US$150 million funding growth portfolio for Hero Future Energies

India, 11 November 2019 – Hero Future Energies (“HFE” or the “Company”), the leading clean-tech company, announces a US$150 million strategic investment to fund the expansion of its renewable energy portfolio, including in selected international geographies.

  • US$150 million strategic investment by Abu Dhabi Future Energy Company (“Masdar”), a global leader in renewable energy projects, sustainable real estate, sustainable mobility and waste to energy
  • Second strategic investment in HFE since 2017, following initial US$125 million made by International Finance Corporation (IFC), part of the World Bank

Clear growth ambitions

The strategic investment of US$150 million by Masdar will help facilitate the further expansion of HFE in India and other key growth markets. Masdar, the renewable energy arm of Mubadala Investment Company, has a history of successful private sector partnerships, having delivered renewable energy projects in more than 25 countries since 2006, representing a combined investment of around US$13.5 billion.

HFE hopes that as much as 25% of its growth will come from new international markets, including Europe and the UK, and Asia, including Bangladesh, Singapore, Vietnam, Philippines and Indonesia.

Commenting on the announcement, HFE Chairman and Managing Director, Rahul Munjal, said:

“Hero Future Energies and Masdar are ideal long-term strategic partners. We have clear alignment in our core ambitions. We are committed to advancing the development, commercialisation and deployment of cutting-edge renewable power solutions. We are delighted that the renewable energy arm of Mubadala has decided to invest in the renewable energy arm of the Hero Group to support HFE’s global expansion plan and our aspiration to be a premier global clean-tech company providing solutions to the enormous challenges posed by climate change”.

Commenting on the announcement, Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said:

“At Masdar, through our strategic investment in Hero Future Energies, we are proud to associate our name with one of India’s most iconic brands and to support its further expansion, both in India’s burgeoning renewable energy sector and new geographies. As a global renewable energy leader active in more than 25 countries, and with HFE’s standing as one of India’s leading independent power producers specialising in onshore wind energy, PV power plants and rooftop solar, we see numerous opportunities to collaborate in growing our market presence and diversifying our portfolio in terms of clean technologies. Our partnership with HFE heralds a new phase of growth for both our companies.”

Commenting on the announcement, Shalabh Tandon, Head of Operations – South Asia, IFC, said:

“In 2017, we made our largest equity commitment in renewables in India by investing US$125 million equity in Hero Future Energies. Our goal was to support the government’s renewable energy programme and boost the confidence of other large business groups and international investors to meet the climate-financing needs of India’s private sector.  With HFE’s new relationship with Masdar, we see that vision taking shape as IFC intends to continue its long-term partnership in supporting the company’s growth in India and international markets.”

Entrepreneurial heritage

HFE is a third-generation entrepreneurial company and part of the Munjal family’s Hero Group (the “Group”), which includes Hero MotoCorp the dominant leader in the domestic motorbike industry in India. HFE was established in 2012 as a deliberate strategic decision by the Group to enter the high growth market of power generation from clean and renewable sources of energy.

The current portfolio includes 1.3GW of wind and solar power and an additional 1.5GW under construction or planned. The Company has a 2022 growth target of 5GW of installed and operating capacity. Alongside traditional renewable projects of solar and wind, HFE will look to deliver futuristic renewable energy projects utilising new technologies including battery storage and floating solar.

-ENDS-

MEDIA CONTACT:

Meenakshi Sarkar                                                           

M: + 91 8130353831

meenakshi.sarkar@herofutureenergies.com

NOTES TO EDITORS

About Hero Future Energies

Established in 2012, Hero Future Energies HFE, subsidiary of Hero Group, is a leading Indian renewable energy provider focussed on providing ‘Planet Positive Power’. HFE currently has a portfolio of [1.3GW] and [1.5GW] under construction. Over a short span of time, the company has developed a pipeline of [~500MW] of large-scale grid connected solar projects across Europe, Africa and South Asia. HFE aims to have with ambitions to grow capacity to [5GW] by 2022. HFE operates in primarily in wind, grid connected solar, rooftop sectors and energy storage. HFE has relocated its global headquarters to London from India. The depth of the financial markets and understanding of renewables makes it the optimum location for HFE’s global headquarters.

As the global economy continues to grow and demand cleaner power, HFE is poised to provide clean power to industries, businesses, educational institutes, non-profits and governmental organizations at competitive rates. HFE will help reduce dependence on power generated by fossil fuels like coal, oil and natural gas to fight back against climate change.

 https://www.herofutureenergies.com/

About Masdar

Abu Dhabi’s renewable energy company Masdar is advancing the commercialization and deployment of renewable energy, sustainable urban development and clean technologies to address global sustainability challenges. Wholly owned by Mubadala Investment Company, the strategic investment company of the Government of Abu Dhabi, our mandate is to help maintain the UAE’s leadership in the global energy sector, while supporting the diversification of both its economy and energy sources for the benefit of future generations. Masdar’s renewable energy projects are located in the UAE, Jordan, Mauritania, Egypt, Morocco, the UK, Serbia and Spain.

Contacts:

E-mail: press@masdar.ae

Tel enquiries in Arabic: +971 2 653 3333

Tel enquiries in English: +971 2 653 6014

For more information please visit: http://www.masdar.ae and connect: facebook.com/masdar.ae and twitter.com/masdar

 

 

2017-01-09 / HFE Team

Hero Future Energies raises fresh equity of USD 125 million to fund growth plans

For IFC, it is the largest commitment in renewables in India

New Delhi, January 5 2017: Hero Future Energies (HFE), the renewable energy firm of the Pawan Munjal-led Hero Group, today raised US$ 125 million in equity infusion from the International Finance Corporation (IFC) – the private sector investment arm of the World Bank – and the IFC Global Infrastructure Fund.
HFE today signed an agreement with IFC for the investment, the proceeds of which will be used to fund the construction of solar and wind power plants of HFE. E&Y was the transaction advisor to HFE.

Pawan Munjal, Chairman, Managing Director & Chief Executive Officer, Hero Moto Corp said, “We at Hero Group keep expanding our horizon beyond the flagship automotive business to nurture socially responsible entrepreneurship, even as we continue to build on the existing competitive strength of the Group. Hero Future Energies is a key pillar of this strategy. This marquee deal with the International Finance Corporation will empower us to take advantage of the potent ecosystem.”

Rahul Munjal, Chairman & Managing Director, Hero Future Energies, said, “Since our inception in 2012, HFE has been funded by the family. In this rapidly evolving sunrise industry, where targets are getting increasingly ambitious, partnering with like-minded institutions with complementary skill set is the future. I am happy to join hands with IFC, in our endeavour to achieve new goal of 2.7 GW renewable energy capacity by 2020. ”

Sunil Jain, Chief Executive Officer, Hero Future Energies commented, “This partnership will fuel our ambitions to tap into the incredible opportunities that lies in both domestic and overseas markets as well as new technologies namely storage, hybrid projects etc. This association is also a validation of our core strengths in timely project delivery, unwavering focus on health safety & environment (HSE) standards, developmental capabilities, stringent asset quality standards and design and engineering skills. We will also aggressively focus on expanding our promising rooftop solar portfolio.”

“With this partnership with Hero Future Energies, IFC is helping accelerate the transition of the renewable energy generation business to mainstream power sector. Through the Global Infrastructure Fund, IFC is also bringing in the support of international institutional investors,” said Mengistu Alemayehu, Regional Director, IFC South Asia. “Such a development will boost confidence of other large business groups and international investors to contribute to India’s ambitious renewable energy targets and make a significant difference in ramping up renewable-energy capacity in the country.”

Huge advances have been made in the past few years to achieve India’s ambitious renewable energy targets of adding 175 GW of renewable energy, including addition of 100 GW of solar power, by the year 2022. Power generation from renewable energy sources like solar and wind has increased to 7.54 per of the total electricity generated in the country during April-September this fiscal. The total installed capacity from various renewable energy sources in the country as on October 31, 2016 is 28,279 MW from wind, 8,728 MW from solar, 4,997 MW from bio-power and 4,323 MW from small hydro power.

About Hero Future Energies

HFE carries an illustrious legacy of the Hero Group; a strategic decision of the Group to enter the domain of power generation from clean and renewable sources of energy. Established in 2012, Hero Future Energies is present across 12 states of India. The young company is an Independent Power Producer (IPP) with operating plants of ~ 360 MW and has 1.4 GW of projects in the pipeline. The company has ambitious growth plans to invest progressively in wind, grid connected solar, rooftop sectors, energy storage over the next few years. By June 2017, it will reach 1.1 GW capacity, having commissioned projects of ~ 520 megawatts in wind and ~550 megawatts in solar in this period. The company is optimistic about building a robust portfolio of 2.7 GW by 2020. HFE plans to set up additional capacity internationally and also develop a sizeable presence in roof top solar plants.

As the Indian economy continues its growth trajectory, HFE is poised to provide clean power to industries, businesses, educational institutes, non-profits and governmental organizations at competitive rates. HFE will assist its clientele in fulfilling their Renewable Purchase Obligations (RPOs) by reducing their dependence on power generated by fossil fuels like coal, oil and natural gas.

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org

India is IFC’s top country exposure, globally. IFC’s committed portfolio in India is over $5 billion as of June 30, 2016. In FY16, IFC committed $1.1 billion in new investments in the country. In addition to strengthening local capital markets in India, IFC is focused on boosting financing in infrastructure and logistics, promoting financial inclusion, helping create conditions to attract increased private capital, and helping structure public-private partnerships.

2016-11-08 / Webmaster

Hero Future Energies wins multiple bids

Hero Future Energies wins multiple bids.

2016-10-21 / HFE Team

Premier educational institutes in Delhi gets solarised

Hero Future Energies commissions ~1 MW alone in DTU, NSIT and IGDTU campus this month
New Delhi, September 26, 2016:

The renewable energy venture of the Hero group, Hero Future Energies (HFE), with a rooftop solar portfolio of ~ 15 MW as on date, has been executing prominent rooftop solar projects across India since 2012. The company has recently commissioned ~ 1 MW for Delhi Technical University (DTU), Netaji Subhash Institute of Technology (NSIT), Indira Gandhi Delhi Technical University for Women (IGDTU) and Shaheed Sukhdev Singh College with IPGCIL as its nodal agency in Delhi.
The intent of solarising educational institutes has far reaching impact on the environment and the society. Once again technical universities of Delhi strengthened its numero Uno position by going solar for four of its institutes in a row.

Shri R. K. Srivastava, Executive Officer, Government of NCT of Delhi commented, “Energy Efficiency and Renewable Energy Management Centre, Department of Power GNCTD is committed to work towards making Delhi a Solar City and this is the first step towards it. Till now solar PV plants with a total capacity of 32MW have been installed in Delhi by various stakeholders and Delhi Secretariat is also running on solar power to a large extent.  We are further working on many more projects in the months ahead. I, congratulate Hero Future Energies for successful completion of 1MW capacity allocated to them and hope that they will keep giving their contribution.”

Mr. Sunil Jain, CEO, Hero Future Energies while flagging off the projects commented, “Educational institutes are ideal case studies for rooftop solar. The output from rooftop plants, can be consumed optimally without the need to store, due to their huge requirements and daytime peak working hours at the campuses. HFE prides itself in associating with such large educational institutions, some of our marquee rooftop solar projects in the construction phase include, Benaras Hindu University, Kochi metro project, Jaipur metro project and others.”

The company has worked as a team with individual institutes, to assess their requirements, thus deliver best in class project engineering. HFE’s in-house team has designed, installed, commissioned the systems, and will be maintaining them for 25 years. The individual project capacity and subsequent CO2 emissions and mangrove equivalent tabulation is as follows:
About Hero Future Energies

HFE carries an illustrious legacy of the Hero Group; a strategic decision of the Group to enter the domain of power generation from clean and non-polluting sources of energy. The young company is an Independent Power Producer (IPP) with operating plants closer to 360 MW. They have ambitious growth plans to invest progressively in Wind, Solar and Hydro sectors over the next few years. As the Indian economy continues its growth trajectory, HFE is poised to provide clean power to industries, businesses, educational institutes, non-profits and governmental organizations at competitive rates. HFE will assist its clientele in fulfilling their Renewable Purchase Obligations (RPOs) by reducing their dependence on power generated by fossil fuels like coal, oil and natural gas. The company has a pipeline of ~1100 MW of wind projects till 2017-18. The company is optimistic about building a robust portfolio of 2.5 GW by 2020.

___________________________________________________________________

Meenakshi Sarkar| Corporate communication | Hero Future Energies Pvt. Ltd.

M: +91 8130353831 | E: meenakshi.sarkar@herofutureenergies.com

2016-08-31 / HFE Team

Hero Future Energies commissions 10 MW solar plant in Karnataka

New Delhi, August 31st 2015: Hero Future Energies (HFE), one of the leading Independent Power Producers (IPP) in the renewable energy sector in India announced commissioning of a 10 MW solar power project, spread over 50 acres of land in Chitradoorga district of Karnataka.

Rahul Munjal, Managing Director, Hero Future Energies while affirming this commencement mentioned, “We are happy to announce that we now have cumulatively commissioned 60 MW of renewable energy projects in this state. We believe Karnataka offers exciting opportunities for growth in renewable energy space.”

Sunil Jain, CEO, Hero Future Energies said, “We have deployed the best-in-class technologies and once again demonstrated our ability to complete the project ahead of schedule. This project was executed by Clean Solar Power, Hiriyur team in India and is estimated to generate approximately 17 million units of electricity annually, which is sufficient to light twenty thousand households.”

For any media related queries please reach out to:
Meenakshi Sarkar
Sr. Manager, Branding & Communication
M: + 91 8130353831
E: meenakshi.sarkar@herofutureenergies.com

2016-02-04 / Webmaster

Hero Future Energies gives Indian RE market its first certified climate bond

  • The company secured funding of INR 300 crores through issuance of rated and secured non-convertible debentures
  • The first Indian company to issue climate bond certified by the Climate Bonds Initiative standards board
  • Rising trend observed among investors to prefer instruments that promote low carbon investments and also increased focus on integrating Environment, Social and Governance (ESG) factors into their investment processes

New Delhi, February 4th 2016: Hero Future Energies Pvt. Ltd. (HFE), renewable energy venture of the Hero Group today announced issuance of India’s first certified climate bond for expansion of its wind portfolio, through its wind holding entity. The entity has secured a funding of INR 300 crore through issuance of rated and secured non-convertible debentures. The Climate Bonds Initiative, which is an international, investor-focused not-for-profit organisation, issues this certification under robust framework for monitoring, reporting and assurance of conformance with the relevant Climate Bonds Initiative standards. The certificate for conformance with Climate Bonds standard has been issued following an independent third party assurance.

Mr. Rahul Munjal, Managing Director, Hero Future Energies said, “Achieving GOI’s goal of 175 GW of renewables by 2022 requires a multipronged approach, including innovative financing, newer structures and attracting global investors. As the certified green bond market scales up in India, it is likely to open up new avenues in renewable energy financing. This kind of certification is an assurance on green “use of proceeds” and will thus attract global institutional investors to fund the growing requirements of this sector in the country.”

Mr. Sunil Jain, CEO, Hero Future Energies informed, “The proceeds from the fund raised will be invested in realizing our goal of 2.5 GW over the next few years. In January 2016, SEBI has also approved norms for issuance and listing of green bonds, such certifications bring transparency and will help meet the huge financing requirements worth $2.5 trillion for climate change actions in India by 2030. In my opinion, such competitively priced instruments are the way forward in reducing cost of financing and thereby cost of energy in India.”

Climate bonds are green bonds which require mandatory independent third party verification to provide additional assurance to investors about the climate benefit of their investments. The  Climate Bonds Initiative standards sets out clear criteria to verify certain green credentials of a bond. The standard is backed by the Climate Bonds standards board comprising of pre-eminent & independent investor entities, which collectively represents $34 trillion in assets under management.

Mr. Sean Kidney, CEO, Climate Bonds Initiative commented, “Hero Future Energies is to be congratulated on their leadership in issuing a certified green bond with a clean energy foundation. This is a solid example of private sector innovation in climate finance.”

“Taking the step to seek and gain certification sends a positive signal to the market. This initiative by HFE demonstrates to investors and other stakeholders the importance of transparency and disclosure as a part of best practice investment governance in green bond issuance.

According to global reports, the total green bonds issued globally is in the tune of USD 42.4 billion in 2015 and is expected to cross USD 60 billion in 2016.

For any media related queries please reach out to:
Meenakshi Sarkar
Sr. Manager, Branding & Communication
M: + 91 8130353831
E: meenakshi.sarkar@herofutureenergies.com


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