Canada Pension Plan Investment Board has invested $144 million in ReNew Power Ventures, buying a 6.3 percent stake in the Indian renewables firm from the Asian Development Bank.
CPPIB managing director Scott Lawrence said the deal “aligns well with our overall power and renewables strategy, further diversifying the CPP Fund”.
CPPIB’s stake in the Gurgaon-based firm may end up being significantly higher. Last autumn, in a filing with the Competition Commission of India, an anti-trust regulator, CPPIB reported that it plans to buy a 16.3 percent stake in ReNew Power through investments of up to $350 million. Along with the ADB shares, the Canadian pension plans to invest about $200 million in compulsorily convertible preference shares; these shares will convert into ReNew equity shares when the company launches an initial public offering expected this year.
Founded in 2011, ReNew Power holds around 2.3GW in wind, utility-scale solar and rooftop solar assets, with another 1GW in the pipeline. Goldman Sachs, the Abu Dhabi Investment Authority and the Global Environment Fund have all invested in ReNew Power. The ADB investment was made in July 2014.
“We are committed to transform our country’s energy portfolio and CPPIB’s investment in the company will further strengthen our resolve,” said ReNew Power chief executive Sumant Sinha.
Headquartered in Toronto, the C$328.2 billion ($263.67 billion; €214.88 billion) CPPIB has invested more than C$6 billion in India.