Piramal, CPPIB to trust $ 600m infrastructure for renewable energy sources

MUMBAI: Piramal Enterprises Has An Agreement Been Concluded With Canada Pension Plan Investment Board (CPPIB) To Set Up A $ 600-million Renewable Energy-Oriented Infrastructure Investment Invit ).

The Duo Will Look For Rope In Additional Partners To Increase The Size Of The Corpus. Invit Are A Hybrid Instrument That Owns And Manages Operational And Revenue-generating Infrastructure Assets Such As Roads And Power Plants, Giving Investors Predictable Cash Flows And Dividends. The Billionaire Ajay Piramal-led Company And CPPIB Will Act As The Co-sponsors Of The Invit, With The Former Bringing In $ 90 Million And The Latter Bringing In $ 360 Million.

The Remaining $ 150 Million Will Be Raised From External Investors. Piramal Enterprises Will Be The Project And Investment Manager For The Invit, Which Plans To Buy 1.5-2GW Or Cash-generating Renewable Assets. Piramal And CPPIB" Will Jointly Call Warehouse Assets For The Proposed Invit," The Companies Said In A Statement.

" The Renewable Energy Sector Is At An Inflection Point And Is Witnessing Significant Consolidation, The Pace Of Which Is Likely To Increase In The Near Future. We Believe That Timing Is Therefore Opportune For Aggregating Assets In This Sector, Given That Existing Players Are Willing Sellers In Light Or A Constrained Capital Market Environment - Both Debt And Equity," Said Piramal In A Statement.