Canada’s OMERS Infrastructure to buy 19.4% stake in Azure Power

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OMERS Infrastructure, an investment unit of Canada’s pension fund OMERS, has agreed to raise a 19.4% stake in Indian developer Azure Power Global Limited for approximately US$ 219 million. It has signed the agreement to acquire the stake from International Finance Corporation (a member of the World Bank Group) and IFC GIF Investment.

Founded in 2008, Azure Power has a cumulative 7 GW of solar portfolio, including 2 GW operational and 5 GW under construction or awarded.

“This agreement to invest in Azure Power demonstrates OMERS strong global interest in high-quality renewable power and energy transition assets, as well as our interest in India as an investment destination and Asia-Pacific more broadly,” said Annesley Wallace, Executive Vice President and Global Head of OMERS Infrastructure. “This transaction directly supports our mission of building a strong portfolio of well-run assets that will help pay pensions to our members over the long term,” she added.

The transaction in Azure would mark OMERS Infrastructure’s second direct infrastructure investment in India, following its 2019 investment in the IndInfravit Trust, which holds a portfolio of 13 operational toll road concessions in India. 

“In support of our goal of prudently diversifying OMERS investments across global markets, we will continue to explore additional promising opportunities in India and throughout Asia-Pacific,” said Prateek Maheshwari, Managing Director, Asia, OMERS Infrastructure. 

OMERS Infrastructure’s global renewable energy holdings include Leeward Renewable Energy, a growth-oriented renewable energy company that owns and operates a portfolio of 22 renewable energy facilities across nine U.S. states, totaling more than 2 GW of installed capacity. Leeward is headquartered in Dallas, Texas.

The transaction is expected to close in early August. Ambit Private Limited acted as financial advisor to OMERS Infrastructure.

Azure Power is backed by several long-term investors, including Caisse de dépôt et placement du Québec (CDPQ), International Finance Corporation (IFC), Helion Venture Partners, Société de Promotion et de Participation pour la Coopération Économique (PROPARCO), and Netherlands Development Finance Company (FMO). 

 

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