Green Energy

CPPIB Plans To Invest In Mytrah Energy

The Canada Pension Plan Investment Board (CPPIB), Canada’s largest pension fund manager is in talks to invest $300 million in the renewable energy producer Mytrah Energy Ltd. Mytrah of course started off with a focus on Wind Energy, and has lately expanded to take on solar energy projects too.

The announcement comes after Mytrah energy showed interest in bringing on a long-term investor with them on board for the purpose of expansion. A decision they took after their plans to raise $500 million bonds was put on hold after the US Federal Reserve raised interest rates recently.

Mytrah Energy was set up 2009 and was listed on London’s Alternative Investment Market (AIM) in 2010 by raising $80 million. In April, Mytrah chairman and founder Ravi Kailas acquired shares from other shareholders through a special purpose vehicle, Raksha Energy Holdings, and delisted from AIM.

Currently, the company has 2 gigawatts of renewable energy capacity that’s operational and under development. These assets are spread across 15 wind farms in nine states including; Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka, Punjab and Tamil Nadu.

“We are in process of raising growth capital and there is interest from multiple investors,” said Mytrah Energy chief financial officer Shirish Navlekar.

CPPIB, has an exposure of more than $5 billion in India and holds a minority stake in India’s largest renewable player ReNew Power Ventures with an investment of about $391 million. CPPIB, which had invested $144 million in ReNew in January, made an additional investment of $247 million in ReNew Power to help finance the acquisition of Actis PE’s energy platform Ostro Energy in April. As of March 31, CPPIB managed over $356 billion in investment assets across the globe.

With India’s aim to achieve 232GW by 2022, and the record low tariffs, producers are keen for long-term investors such as global pension funds who can stay for minimum 10-15 years than typical private equity funds with an investment horizon of 5-6 years.

copyright:iamrenew.com

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