Canadian Fund CPPIB acquires Rs 920 cr stake in ReNew Power

Canada Pension Plan Investment Board (CPPIB) has acquired 6.30% stake held by Asian Development Bank in ReNew Power Ventures for Rs 920 crore.

On Monday, ReNew Power announced the transaction that makes CPPIB third-largest stakeholder in the clean energy company operating into wind and solar power. Goldman Sachs, the initial investor, continues to hold a majority stake in the renewable energy player.

"This transaction aligns well with our overall power and renewables strategy, further diversifying the CPP Fund," said Scott Lawrence, managing director, head of fundamental equities, CPPIB.

Lawrence added, "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. CPPIB will continue to seek opportunities to expand our power and renewables portfolio as demand grows worldwide along the transition to renewables."

Since its inception in 2011, Sumant Sinha-led renewable energy company has had multiple rounds of funding from the marquee investors including Goldman Sachs, Abu Dhabi Investment Authority, Japan's JERA, which is a joint venture between Tokyo Electric Company and Chubu Electric Company, Asian Development Bank and Global Environment Fund. Over the years, ReNew Power has consistently raised equity which currently stands at $650 million.

On the development, Sinha, chairman and chief executive officer of ReNew Power, said, "We are committed to transforming 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."

According to the data shared by CPPIB, as on September 30, 2017, CPPIB's investments in India stood at Canadian dollar 6.1 billion.

ReNew Power has already commissioned 2.3 gigawatt of clean energy projects and it claims to have another 1 gw of asset base in the pipeline.

...& ANALYSIS

• By buying 6.30% stake, Canada Pension Plan Investment Board has become third-largest stakeholder in ReNew
   
• Goldman Sachs, the initial investor, continues to hold a majority stake in the renewable energy player