Global investment management organisation Canada Pension Plan Investment Board (CPPIB) is acquiring a 6.3% stake in Indian renewables developer ReNew Power Ventures from the Asian Development Bank (ADB) for US$144 million.
Founded in 2011, ReNew Power is a leading Indian renewable energy developer and operator, which is also backed by Goldman Sachs.
Scott Lawrence, managing director, Head of Fundamental Equities, CPPIB, said: “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.”
Sumant Sinha, chairman and CEO of ReNew Power, said: “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.”