Azure Power owns a portfolio of solar assets across India providing 2GW of operational capacity and a further 5GW of capacity under construction or awarded
Canadian pension fund Ontario Municipal Employees’ Retirement System (OMERS) has announced its plan to spend $219 million from World Bank’s private-sector development arm International Finance Corporation (IFC) and IFC GIF Investment Co to purchase a 19.4 percent stake in NYSE-listed Azure Power Global Ltd.
Azure Power, founded in 2008 and listed on the NYSE in 2016, owns a portfolio of solar assets across India providing 2GW of operational capacity and a further 5GW of capacity 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 in a statement.
“The closing of this transaction would mark our second direct infrastructure investment in India, following our 2019 investment in the IndInfravit toll road platform,” added Prateek Maheshwari, managing director, Asia, OMERS Infrastructure in the statement.
“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,” Maheshwari added.
With net assets of CAD 105 billion, OMERS earlier announced an investment of $121 million for a 22.4 percent stake in IndInfravit Trust, an infrastructure investment trust (InvIT), marking its first infrastructure deal in India.
“The transaction is expected to close in early August,” the statement said.
Canadian pension funds have been placing significant clean energy India bets and represent the so-called patient capital, which seeks modest yields over time. India fits the risk profile given that the markets here have matured from the early risk stage. This interest also comes amid a growing focus on environmental, social and governance (ESG) investing.
