Japan-based financial services group ORIX Corporation has announced it will reenter a share transfer agreement to divest part of its holdings in Hyderabad-based renewable energy company Greenko Energy Holdings to AM Green Power.

The transaction involves selling 17.5% of its 20% stake in Greenko to Netherlands-based AM Green Power.  Following the transaction, ORIX’s shareholding in Greenko will stand at 2.5%.

The transfer of the shares is priced at approximately $1.28 billion. Regulatory approvals, including those under the Indian Competition Act, have already been secured, and the transaction is scheduled to be completed by the end of July 2025.

In addition to the share transfer, ORIX has agreed to invest in a convertible note issued by AM Green (Luxembourg). The total underwriting amount of the convertible note is approximately $731 million.

The agreement for both the share transfer and the convertible note investment was signed recently, with execution scheduled for July 2025.

According to ORIX’s estimation, the transaction is expected to generate a gain of approximately ¥93.4 (~$646.8 million), which includes a valuation gain on the remaining 2.5% stake. However, ORIX has not revised its consolidated financial forecast for the fiscal year ending March 31, 2026, and will continue to monitor developments to determine if adjustments are required.

Greenko Energy Holdings operates renewable energy generation facilities with a total installed capacity of 7.3 GW across solar, wind, and hydroelectric segments in India. It is also developing large-scale pumped storage power projects.

AM Green Power focuses on decarbonization and green solutions, with ongoing projects in green hydrogen and green ammonia production, as well as the manufacturing of water electrolysis equipment necessary for green hydrogen production.

The company plans to produce 5 million tons per annum (MTPA) of green ammonia, with a 1 MTPA project under construction in Kakinada, Andhra Pradesh, and scheduled for commissioning in the second half of 2026.

Last year, AM Green signed binding term sheets with European company Yara Clean Ammonia for the supply of green ammonia.

In 2021, ORIX had acquired a 21.8% stake in Greenko Energy Holdings.