The Canada Pension Plan Investment Board (CPPIB) has acquired a 6.3 percent stake in Indian renewable energy project developer ReNew Power from the Asian Development Bank (ADB) for $144 million.

“India’s overall power industry continues to grow, and we see solar and wind as attractive clean energy sources to meet the country’s growing demand for electricity. We look forward to a long-term partnership with ReNew Power’s excellent management team which has a proven track record as a reliable, experienced developer and operator with an impressive portfolio built up over the past six years,” said Scott Lawrence, the managing director of Head of Fundamental Equities for CPPIB.

Lawrence added that CPPIB will continue to seek opportunities to expand its power and renewables portfolio as worldwide demand grows.

Sumant Sinha, the chairman and chief executive officer of ReNew Power said, “We are committed to transforming our country’s energy portfolio and CPPIB’s investment in the company will further strengthen our resolve. Asian Development Bank made an equity investment in ReNew Power during our early days in July 2014 and we are thankful to them for their sustained partnership. We will continue to focus on developing and investing in high-quality projects.”

CPPIB first revealed its plans to acquire ADB’s equity stake in ReNew Power in November. ADB first purchased its stake in Renew Power by making a $50 million (~₹3.4 billion) equity investment in the company in 2014.

The deal comes as ReNew Power is actively working to raise funds for its expansion plans and loan repayments. The company recently raised ₹22.35 billion (~$352 million) by issuing non-convertible debentures in two parts.

CPPIB is also set to invest approximately $200 million (~₹12.9 billion) in ReNew Power Ventures in the form of compulsory convertible preference shares (convertible debt) that will convert to equity shares at the time of an initial public offering.

Once the deal closes, ReNew Power’s investor base will include Goldman Sachs, ADB, JERA, Abu Dhabi Investment Authority, the Global Environment Fund, and CPPIB, among others.

Recently, ReNew Power also won a bid to develop a 50 MW grid-connected solar PV project in the Bhadla Solar Park.

According to Mercom’s India Solar Project Tracker, Renew Power has an installed solar capacity of over 1 GW and a project development pipeline of over 500 MWs.

Image credit: ReNew Power