BII, EAAIF back Blueleaf Energy’s India expansion through $75 million facility
British International Investment (BII) has partially syndicated its mezzanine debt investment in Blueleaf Energy to the Emerging Africa & Asia Infrastructure Fund (EAAIF), marking a new financing partnership to support the renewable energy developer’s expansion plans in India.
Under the arrangement, EAAIF will participate in 50% of the US$75 million mezzanine debt facility originally underwritten by BII. Following the transaction, both investors will hold US$37.5 million each in the facility.
Blueleaf Energy, a pan-Asian renewable energy platform and independent power producer owned by Macquarie Asset Management, is targeting the development of around 5 GW of renewable energy capacity in India by 2030.
Project pipeline
The financing will support Blueleaf Energy’s next phase of growth in India, including the development of 850 MW of greenfield renewable energy capacity.
The company is developing a portfolio of utility-scale solar, wind and energy storage projects in the country. According to the companies, these projects are expected to generate more than 3.2 GWh of renewable electricity annually and avoid over 3.1 million tonnes of CO₂ emissions each year.
The transaction also represents EAAIF’s third renewable energy financing in India and expands its climate infrastructure portfolio in Asia.
Financing model
BII said mezzanine financing remains relatively underutilised in India’s renewable energy sector. Its initial investment in Blueleaf Energy, made last year, was aimed at demonstrating the viability of this financing structure while supporting the company’s project pipeline.
The development finance institution said the latest transaction reflects its “originate-to-share” model, under which it deploys capital to support projects before bringing in institutional investors to expand available funding.
BII stated that it will retain a 50% stake in the facility and continue supporting Blueleaf Energy, while seeking to mobilise additional private capital over time.
EAAIF is a company of the Private Infrastructure Development Group (PIDG) and is managed by global investment firm Ninety One.
Management comments
UK Minister for Development, Jenny Chapman, said:
“This deal shows that where British International Investment leads, other investors follow. The partnership between BII and Ninety One is not only good for business, it’s good for the planet too, helping Blueleaf to support clean energy transitions through solar, wind and energy storage projects across India.
“This is a great example of the type of partnership the UK’s Emerging Markets and Developing Economies Investor Taskforce is bringing about, and we want to see even more as part of our modern approach to development.”
Leslie Maasdorp, Chief Executive, BII, commented:
“This transaction is a strong example of our originate-to-share approach under British Climate Partners, where we deploy our capital to unlock projects and then bring in institutional investors to scale them. By recycling our capital and partnering with impact investors like EAAIF, which is managed by Ninety One, we can accelerate the build-out of clean energy infrastructure while maximising our impact.”
Hendrik du Toit, founder and Chief Executive, Ninety One, the fund manager of EAAIF, said:
“Mobilising capital at scale is essential to accelerating the energy transition in emerging markets. This transaction demonstrates how development finance institutions and private investors can work together to expand access to renewable energy infrastructure by bringing additional capital to projects with strong long-term fundamentals. It also marks an important step in growing EAAIF’s climate infrastructure investments in Asia, while supporting India’s ambitions to build a more resilient, low-carbon economy.”
Philippe Valahu, Chief Executive, Private Infrastructure Development Group (PIDG), added:
“We are pleased to partner with BII again on a transaction to unlock more capital for climate infrastructure where it is needed most. By bringing EAAIF into Blueleaf Energy’s growth journey, we can support renewable energy deployment at greater scale, while helping to deepen the pool of capital available for India’s clean energy transition. India will be central to global progress on climate action, and this investment reflects PIDG’s commitment to backing scalable solutions for meaningful impact.”
Photo credit: British International Investment
