Canada Pension Plan Investment Board will invest about $200 million in Renew Power

The Canada Pension Plan Investment Board (CPPIB) is set to invest approximately $200 million in Indian independent power producer Renew Power Ventures Pvt. Ltd. in the form of compulsory convertible preference shares (convertible debt) that will convert to equity shares at the time of initial public offering. According to Mercom Capital Group, a second transaction was also announced where CPPIB will acquire 6.33 percent of equity share capital of Renew Power from Asia Development Bank (ADB). Renew had received a $50 million in equity investment from ADB in 2014.
JERA, a joint venture company of two of Japan’s largest utility companies Tokyo Electric Power and Chubu Electric Power, invested $200 million for a 10 percent stake in Renew Power in February this year. Renew Power was valued at approximately $2 billion at the time of the transaction. The additional investment would put Renew Power’s valuation at a little over $2 billion. In February this year, the company also raised $475 million through its subsidiary Neerg Energy by selling green bonds to overseas investors.
Renew Power’s investor base includes Goldman Sachs, Asian Development Bank, JERA, Abu Dhabi Investment Authority and Global Environment Fund among others. According to Mercom India Research, Renew Power has installed solar capacity of 1,091 MW with another 100 MW under development and wind capacity of 1,260 MW.

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