Hyderabad, India [RenewableEnergyAccess.com] Origo Sino-India Plc, an investment and strategic advisory company focused on the private equity markets of China and India, has entered into definitive agreements with Roshini International Bio Energy Corporation Ltd (RIBEC) to create an international joint venture focused on the renewable bioenergy sector.
Origo has taken a 20% equity position in RIBEC, while extending a convertible note of up to USD$2,000,000 and retaining the right to invest an additional USD$6 million in a pre-IPO private placement.
Headquartered in Hyderabad, India, RIBEC has, according to the company, the world’s largest plantation of non-edible, tree-borne feedstock with more than 40 million trees and seedlings. A fully integrated bioenergy company, RIBEC is involved in the whole bioenergy value chain from plantations to refining and trading of biodiesel, bioethanol, biogas and biofertilisers.
In addition to taking a 20% equity position in RIBEC, Origo has extended a credit facility under which Roshini may draw down up to USD$2,000,000 for working capital purposes and operational expenses associated with the expansion of RIBEC’s feedstock. The note is repayable in full in the event of an external financing round, or convertible into equity at the discretion of Origo at a 20% discount to the then applicable price per share.
Origo has also been retained as a strategic consultant to assist RIBEC’s expansion and fundraising activities.
Vinay Ganga, Managing Director for India of Origo Sino-India Plc, said: “We are pleased to have taken a substantial equity position in the world’s largest non-edible, tree-borne feedstock producer. The world’s growing and unmet need of biofuel brings enormous business and growth opportunities for integrated producers such as RIBEC.”
Anil Reddy, CEO of RIBEC, added: “RIBEC needed a financial and strategic partner rapidly to expand and list on a global stock exchange. Origo provided the ideal combination of finance, management and exposure to India, China and Africa.”