UK’s development finance institution and impact investor, British International Investment (BII), has announced the partial syndication of its mezzanine debt investment in Blueleaf Energy.

Under the transaction, Emerging Africa and Asia Infrastructure Fund (EAAIF) will participate in 50% of the $75 million mezzanine debt facility underwritten by BII.

The financing will support Blueleaf Energy’s development of 850 MW of greenfield renewable energy capacity in India.

EAAIF is part of the Private Infrastructure Development Group (PIDG) and is managed by global investment firm Ninety One.

Blueleaf Energy is a pan Asian renewable energy platform and independent power producer owned by Macquarie Asset Management. The company aims to develop a renewable energy portfolio of approximately 5 GW in India by 2030.

According to BII, mezzanine financing remains a relatively underserved source of capital in India’s renewable energy sector. The institution said its investment in Blueleaf Energy last year demonstrated the viability of this financing structure while supporting the company’s project pipeline. EAAIF’s participation is intended to bring additional impact-focused capital to the platform.

EAAIF has financed infrastructure projects across emerging markets for more than two decades. According to the organizations, the investment aligns with the fund’s strategy of supporting climate-resilient infrastructure and expands its climate infrastructure investments in Asia. The transaction is also EAAIF’s third financing in India’s renewable energy sector.

BII said the partnership combines its sector expertise and local presence with EAAIF’s infrastructure financing experience to support Blueleaf Energy’s continued expansion and attract additional private investment into climate infrastructure.

According to the announcement, Blueleaf Energy’s planned portfolio of utility-scale solar, wind, and energy storage projects is expected to generate more than 3.2 GWh of renewable electricity annually and avoid more than 3.1 million metric tons of carbon dioxide emissions each year. The company said the projects are intended to increase the share of renewable energy in India’s electricity mix.

The announcement also noted India’s target of reducing emissions intensity by 47% relative to its economic output by 2035 and said the financing supports the country’s clean energy transition.

In May this year, Copenhagen Infrastructure Partners, through its Growth Markets Fund II (GMF II), and British International Investment announced the launch of North Star, a $300 million (~₹28.86 billion) renewable energy platform in India.

Last October, Blueleaf Energy signed an agreement with UK-based development finance institution and impact investor British International Investment (BII) to invest $75 million in India’s energy transition.