Brookfield to invest $1 billion in Avaada

Industry Outlook Team | Monday, 10 April 2023

Canadian shareholder Brookfield agreed to make investments of $1 billion in Avaada Ventures in what will be the biggest green energy bet in the country. A formal contract was signed lately between Brookfield and serial entrepreneur Vineet Mittal, leader of the Avaada group, and the

first tranche of $400 million has been disbursed,
people aware of the matter said on condition of anonymity.

The remaining $600 million will be disbursed based on performance-linked milestones as projects scale up. Avaada Ventures is the holding company of the group. Funds raised from Brookfield will be used for the group's solar cell/module manufacturing and green ammonia plans, as well as scaling up its renewable energy generation capacity.

Avaada is also negotiating with an existing investor, Thailand's state-owned utility PTT, to deploy another $300 million. PTT had in July 2021 invested $454 million in Avaada Energy, the solar arm of the Avaada Group, and holds a 43% stake in that unit. The additional investment by PTT may be made in the solar arm, said the people cited above. Shareholder approvals and clearances are being worked out before a formal announcement on the fundraising is made, they added.