Ontario Teachers’ Pension Plan and the Public Sector Pension Investment Board (PSP Investments) have announced an agreement with Banco Santander to jointly acquire a portfolio of renewable energy and water infrastructure assets.
The assets, currently owned solely by Santander, will be transferred to a new company owned equally by all three parties.
The transaction, which is expected to close within the first half of 2015 subject to receipt of customary regulatory approvals, values the assets in excess of US$2 billion ($2.3 billion). Santander, PSP Investments and Teachers’ intend to invest significant additional amounts in the new company over the next five years.
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The portfolio includes wind, solar and water infrastructure assets located in seven countries that are operating or in development.
“We are excited about partnering with Santander and PSP Investments and look forward to supporting management in growing this company significantly in the coming years,” says Andrew Claerhout, senior vice-president, infrastructure at Teachers’. “This investment directly supports our focus on investing in platforms that provide access to development opportunities globally.”
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“This investment fits well with our strategy of deploying capital in sizeable opportunities that offer long term revenues and growth potential along with solid partners,” says Bruno Guilmette, senior vice-president, infrastructure investments at PSP Investments. “It also allows PSP Investments to continue to develop its portfolio of private energy assets while contributing to environmentally sustainable energy production.”
Santander’s sale was led by its asset and capital structuring team, which will manage the acquired portfolio and will lead investments in the new global renewable energy and water platform.