Ontario Teachers' Pension Plan (OTPP) and the Public Sector Pension Investment Board (PSP Investments), two of Canada's largest pension funds, have announced an agreement with Banco Santander, S.A. 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$2.0 billion. Santander, PSP Investments and OTPP intend to invest significant additional amounts in the new company over the next five years.
The portfolio includes wind, solar and water infrastructure assets located in seven countries that are operating or in development. The portfolio will be managed by an experienced team led by Marcos Sebares.
Marcos Sebares, CEO of the new entity, added:
"Over the last seven years in Santander, the business has become one of the leading developers of renewables projects around the world, having invested over US$2 billion in renewable energy and water projects. A combination of Santander, which has consistently been voted the greenest bank in the world, and two investors, such as PSP Investments and OTPP, who have a long history of sustainable investing, marks the beginning of a new phase in the development of our company into one of the world's leading renewable energy investment companies."
Santander's sale was led by its Asset & Capital Structuring (A&CS) team of 30 people specialized in infrastructure equity investments through its global footprint in Spain, Italy, UK, US, Brazil and Mexico. This team will manage the acquired portfolio and will lead investments in the new global renewable energy and water platform. Macquarie Capital acted as financial advisor to Santander.