KKR Acquires Off-Grid Energy Provider Zenith – ESG Today

Various asset and personal fairness investor KKR introduced an settlement to amass Australia-based impartial energy producer (IPP) Zenith Vitality.

Based in 2006, Zenith is one among Australia’s largest IPPs, with a concentrate on sustainable and dependable hybrid energy options for distant, off-grid useful resource sector shoppers and concrete microgrids for business, industrial, and residential precincts – together with serving Australia’s off-grid mining business.

The corporate has greater than 710MW contracted capability throughout roughly 15 websites, secured below long-term contracts, and just lately accomplished a A$1.9 billion (USD$1.2 billion) refinancing and upsizing of its present financial institution debt amenities, offering the corporate with greater than A$1 billion of progress capital to help the event of recent initiatives.

Zenith’s CEO and Managing Director, Hamish Moffat, mentioned:

“The funding by KKR will speed up our progress and skill to service giant scale initiatives with a broad capital base. There are vital and fast alternatives inherent within the decarbonisation of Australia’s mining sector, which Zenith is uniquely positioned to ship through large-scale, excessive penetration, hybrid energy initiatives. In the present day’s announcement positions the corporate to proceed offering our distinct worth proposition through these distinctive distant power options to our present shoppers, whereas enabling us to pursue a strong pipeline of recent alternatives as Australia’s mining sector intensifies its decarbonisation efforts.”

The acquisition marks the newest in a collection of power transition and sustainable infrastructure-focused transactions for KKR, and follows the identification by the agency in December 2023 of decarbonization, and the big scale “brown-to-green” transition of asset-heavy sectors particularly, as a key “mega-theme” driving funding alternatives.

KKR is buying Zenith by means of its Asia Pacific Infrastructure Buyers II Fund from an investor consortium together with Pacific Fairness Companions, OPSEU Pension Belief, and Foresight Group, with Zenith’s founder and administration retaining a minority stake.

Andrew Jennings, Managing Director and Head of Australia & New Zealand (ANZ) Infrastructure, KKR, mentioned:

“Zenith has established itself as one of many clear leaders in deploying and managing hybrid energy options in Australia, a precedence marketplace for KKR in Asia Pacific. We stay up for supporting Zenith and its administration crew over the subsequent stage of progress and serving to them capitalise on the numerous alternative for off-grid renewable energy.”