Canada Pension Plan Investment Board (CPPIB) has agreed to acquire the Asian Development Bank’s 6.3% stake in Sumant Sinha’s ReNew Power Ventures Pvt. Ltd. for $144 million.
Once completed, the ADB will make a handsome return on its $50 million equity investment made in ReNew Power in 2014. ReNew Power, which competes with Tata Power Renewable Energy, has about 2,500 MW of commissioned wind and solar energy assets, with another 1,000 MW under construction or development.
“This transaction aligns well with our overall power and renewables strategy, further diversifying the CPP Fund,” said Scott Lawrence, MD, Head of Fundamental Equities, CPPIB.
Power industry growth
“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,”
On September 30, 2017, CPPIB’s investments in India amounted to C$6.1 billion.
“We are committed to transform our country’s energy portfolio and CPPIB’s investment...will 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,” said Mr. Sinha, founder chairman and CEO, ReNew Power.
“We will continue to focus on developing and investing in high-quality projects,” Mr. Sinha added.