HMC Capital, KKR Gain Green Light for $603 Million Energy Platform
Synopsis
ACCC & FIRB have granted regulatory approvals to clear the path for HMC Capital and KKR to complete their clean energy partnership, with the new Illuma Energy platform, which is focused on battery storage and energy infrastructure.
Key Highlights
- HMC Capital and KKR to obtain ACCC and FIRB approval.
- The energy platform will be funded via a $603 million commitment from KKR-managed funds.
- Post financial close, the platform will be rebranded as Illuma Energy.
HMC Capital secured ‘clean energy partnership’approval from the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB) for its partnership with KKR, a global investment company. Financial close is expected on June 30 for the partnership.
Investment Details
KKR-managed funds will invest up to US$603 million into HMC Capital’s energy platform. The first $355 million will be invested at financial close, followed by up to $248 million in financing for the full completion of its first battery energy storage system (BESS) being developed on the platform.
HMC Capital will also earn a $35 million upfront fee that will be recognised in its accounts for the financial year ending June 30 2026. HMC Capital will see its investment in the platform reduced to about $190 million by 30 June following completion of the transaction.
Platform Rebranding
The clean energy platform will be called Illuma Energy after the transaction closes.
Source: Capital Brief
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