CPPIB-led JV buys two Brazil wind farms

The pension firm has formed a joint venture with local company Votorantim Energia to invest in the country’s energy sector.

The Canada Pension Plan Investment Board has teamed with Brazil’s Votorantim Energia to launch a joint venture targeting the Brazilian power sector.

The JV’s first deals will be the acquisitions of two Brazilian wind farms – the 359MW Ventos do Araripe III in the states of Piauí and Pernambuco, which it is buying from Brazilian developer Casa dos Ventos, and the 206MW Ventos do Piauí in the state of Piauí. CPPIB would not disclose the price of the two buys, but said it is contributing 690 million reais ($207.9 million; €176.1 million) in equity.

The JV with Votorantim Energia, a subsidiary of Brazil-based Votorantim Group, will aim to invest more than 3 billion reais in Brazil’s energy sector, according to CPPIB.

“This transaction enables CPPIB to establish a footprint in the attractive Brazilian power generation market, which fits well with our overall power and renewables strategy and further diversifies the CPP Fund,” said Bruce Hogg, CPPIB’s head of power and renewables. “Brazil is considered among the top renewable energy markets in the world, and as demand in the country grows, wind energy is expected to be one of the largest contributors to this new supply.”

The deals are pending regulatory approval.