CPPIB is set to acquire a 6.3% stake in ReNew Power Ventures Pvt. Ltd from the Asian Development Bank for $144 million. ReNew Power Ventures is an energy developer and operator that is based in India and has a diversified portfolio across wind, utility-scale solar and rooftop solar power- producing assets.
According to Scott Lawrence, Managing Director, Head of Fundamental Equities, CPPIB:
“This transaction aligns well with our overall power and renewables strategy, further diversifying the CPP Fund. India’s overall power industry continues to grow and we see solar and wind as attractive clean energy sources to meet the country’s growing demand for electricity. We look forward to a long-term partnership with ReNew Power’s excellent management team which has a proven track record as a reliable, experienced developer and operator with an impressive portfolio built up over the past six years. CPPIB will continue to seek opportunities to expand our power and renewables portfolio as demand grows worldwide along the transition to renewables.”
Sumant Sinha, Chairman and CEO of ReNew Power also said the following about the investment:
“We are delighted that CPPIB has chosen to invest in ReNew Power, which is one of India’s leading clean energy companies. We are committed to transform our country’s energy portfolio and CPPIB’s investment in the company will further strengthen our resolve. Asian Development Bank made an equity investment in ReNew Power during our early days in July 2014 and we are thankful to them for their sustained partnership. We will continue to focus on developing and investing in high-quality projects.”
CPPIB has invested a total of Canadian Dollar 6.1 billion ($4.85 billion) as of September 30, 2017.
A professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP), CPPIB is headquartered in Toronto with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, São Paulo and Sydney. CPPIB has a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. CPP fund totaled Canadian Dollars 328.2 billion ($261.17 billion) as of September 30 2017.
About ReNew Power
Founded in 2011 and headquartered in India, ReNew Power Ventures is India’s leading clean energy Independent Power Producer (IPP) companies and is fully committed to changing the country’s current energy portfolio by delivering cleaner and smarter energy choices. ReNew Power is also planning on reducing India’s carbon footprint.