Skip to content

Blog Post

Octus on Credit: Can Greenko avoid a debt trap?

Malvika Joshi, India Editor

Share on X (opens in a new window) Share on Facebook (opens in a new window) Share on LinkedIn (opens in a new window)

In June, the founders of GIC-backed Greenko Energy Holdings raised a $660 million two-year all-PIK facility at 14%, tapping global private credit funds and banks. The facility is secured against their minority stake in Greenko and tied to AM Green Power BV, a sister company focused on green ammonia production, where the debt sits.

To avoid falling into a debt trap, the founders aim to partially repay the loan by bringing in an external equity investor at AM Green. But the company has yet to begin production, making it difficult to attract a credible investor willing to take a minority stake at scale.

Complicating matters, Greenko’s unlisted shares pledged for the facility are linked to the Pinnapuram energy storage project in Andhra Pradesh, which has missed its original end-2023 commissioning timeline and has yet to commence commercial operations. Meanwhile, Greenko’s leverage remains high at 12.3x.

Without a strong operational track record at AM Green, securing either a financial or strategic equity investor will be challenging. Refinancing is the likely fallback, but may come at a higher cost if project delays persist—raising the risk of a debt trap for the promoters.

To get these insights delivered directly to your inbox, sign up to receive Octus on Credit.

This publication has been prepared by Octus Intelligence, Inc. or one of its affiliates (collectively, "Octus") and is being provided to the recipient in connection with a subscription to one or more Octus products. Recipient’s use of the Octus platform is subject to Octus Terms of Use or the user agreement pursuant to which the recipient has access to the platform (the “Applicable Terms”). The recipient of this publication may not redistribute or republish any portion of the information contained herein other than with Octus express written consent or in accordance with the Applicable Terms. The information in this publication is for general informational purposes only and should not be construed as legal, investment, accounting or other professional advice on any subject matter or as a substitute for such advice. The recipient of this publication must comply with all applicable laws, including laws regarding the purchase and sale of securities. Octus obtains information from a wide variety of sources, which it believes to be reliable, but Octus does not make any representation, warranty, or certification as to the materiality or public availability of the information in this publication or that such information is accurate, complete, comprehensive or fit for a particular purpose. Recipients must make their own decisions about investment strategies or securities mentioned in this publication. Octus and its officers, directors, partners and employees expressly disclaim all liability relating to or arising from actions taken or not taken based on any or all of the information contained in this publication. © 2026 Octus. All rights reserved. Octus(TM) and the Octus logo are trademarks of Octus Intelligence, Inc.