A new US$2 billion renewable energy investment fund backed by Santander Bank and two major pension funds launched in London on Thursday.
Cubico Sustainable Investments will be jointly owned by Santander, Ontario Teachers' Pension Plan (Teachers) and the Public Sector Pension Investment Board (PSP Investments).
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Wind and solar assets previously owned by Santander and totaling 1.4GW in capacity have been transferred to the fund. These include projects in development, construction and operation. The fund will also invest in water infrastructure.
The portfolio is spread across seven countries, namely Brazil, Mexico, Uruguay, Italy, Portugal, Spain and the UK.
Juan Andres Yanes, senior executive vice president, Banco Santander S.A, said: “This is the culmination of almost two years of focused work that started in 2013 with the identification of the sale opportunity and the best parties to join us in this innovative endeavour.
“We are pleased to start this new joint venture with Teachers' and PSP Investments, two of the best known pension funds in infrastructure investment. We are confident that this venture represents a significant milestone for Santander to increase its footprint in the renewable and water infrastructure industry.”
The formation of the new fund creates an ongoing investment vehicle based around Santander and the pension funds' collaboration, which was announced late last year.
Together, the two pension funds hold more than C$250 billion (US$200 billion) in assets.