Canada Pension Plan Investment Board (CPPIB) will acquire the stake from the Asian Development Bank (ADB), ReNew Power said in a statement.
CPPIB would become the third largest stakeholder in ReNew Power, where Goldman Sachs holds the majority stake. It had previously agreed to invest about $200 million through compulsorily convertible preference shares. They were to be converted into equity whenever ReNew Power goes for an initial public offering.
Founded in 2011, ReNew Power is a leading Indian renewable energy developer and operator with clean energy capacity diversified across wind, utility-scale solar and rooftop solar power-producing assets.
“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.
Indian power industry continues to grow, including 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,” he said.
Sinha, Chairman and CEO of ReNew Power said ADB had made an equity investment in the company during its early days in July 2014.
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