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Pension board invests in renewable power assets

Canada Pension Plan Investment Board announced that it has agreed to acquire from Enbridge and its related entities’ stakes in renewable power assets.

CPPIB grabbed 49% interests in select North American onshore renewable power assets as well as 49% of Enbridge’s stakes in two German offshore wind projects. The transaction was valued at roughly $1.75bn.

The assets include 14 long-term fully contracted operating wind and solar assets in four Canadian markets and two operating assets in the US, with a combined installed capacity of approximately 1.3 gigawatts.

Enbridge and its affiliates will continue to manage, operate and provide administrative services to the North American and Hohe See projects.

CPPIB will fund its 49% pro-rata share of the remaining construction capital required to complete the Hohe See projects (offshore Germany), which are scheduled to come into service at the start of 2020. CPPIB’s additional capital commitment is estimated at approximately C$0.5 billion, bringing CPPIB’s total commitment to approximately C$2.25 billion.

CPPIB and Enbridge have also entered into an agreement for a 50-50 joint venture to pursue future European offshore wind projects.

This article has been edited. It first appeared on Private Capital Journal, a site managed by CPE Media Inc, the official data provider for PCMA. Read the rest of the article here.

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