Piramal Enterprises, Canadian pension fund set up $600-mn renewable energy trust; CPPIB to hold 60% in new venture

CPPIB has committed $360 million and holding up to 60 percent while Piramal Enterprises has committed $90 million and holding 15 percent.

Press Trust of India May 07, 2019 17:38:10 IST
Piramal Enterprises, Canadian pension fund set up $600-mn renewable energy trust; CPPIB to hold 60% in new venture
  • Both Piramal Enterprises and CPPIB will act as co-sponsors of the proposed InvIT and hold up to 75% of the units

  • The InvIT would seek to raise capital from other like-minded investors for the remaining 25%

  • Piramal would act as the sole investment manager as well as project manager for the proposed InvIT

New Delhi: Piramal Enterprises on Tuesday said it has signed an initial pact with Canada Pension Plan Investment Board to co-sponsor a $600 million renewable energy-focused infrastructure investment trust (InvIT).

"With an initial corpus of $600 million( about Rs 4,162 crore), and the option to scale further, the InvIT would seek to acquire up to 1.5-2 GW of stable and cash generating renewable assets on a hold-to-maturity basis, with a firm focus on diversification of both asset type as well as off-taker profile," Piramal Enterprises said in a release.

Piramal Enterprises Canadian pension fund set up 600mn renewable energy trust CPPIB to hold 60 in new venture

Representational image. AP

As per the release, both Piramal Enterprises and Canada Pension Plan Investment Board (CPPIB) will act as co-sponsors of the proposed InvIT and hold up to 75 percent of the units.

CPPIB has committed $360 million and holding up to 60 percent while Piramal Enterprises has committed $90 million and holding 15 percent.

The InvIT would seek to raise capital from other like-minded investors for the remaining 25 percent.

In the interim and prior to its launch, Piramal Enterprises and CPPIB will jointly warehouse seed assets for the proposed InvIT. Piramal would act as the sole investment manager as well as project manager for the proposed InvIT, the release added.

Piramal Enterprises has presence in financial services, pharmaceuticals and health care insights and analytics. Its consolidated revenues were over $1.9 billion in 2018-19.

CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Uday Kotak sells 1.5% stake in Kotak Mahindra for Rs 2,255 cr to Canadian funds
Business

Uday Kotak sells 1.5% stake in Kotak Mahindra for Rs 2,255 cr to Canadian funds

Uday Kotak, along with family members, held 33.61 percent stake in the bank as of December 2016, out of which 33.30 per cent is held by Kotak in his personal capacity.

Piramal Enterprises raises Rs 105 crore via NCDs, mops up Rs 405 cr in June
Business

Piramal Enterprises raises Rs 105 crore via NCDs, mops up Rs 405 cr in June

Earlier this month, the company had raised Rs 300 crore through issuance of NCDs

Piramal Enterprises Q4 profit dives 88% to Rs 456 crore; consolidated revenue stands at Rs 3,679.67 crore
Business

Piramal Enterprises Q4 profit dives 88% to Rs 456 crore; consolidated revenue stands at Rs 3,679.67 crore

In the year-ago period, Piramal Enterprises had a net profit of Rs 3,943.98 crore on the back of deferred tax, according to a regulatory filing