India's Piramal Enterprises, Canada's CPPIB to form $600 mln InvIT

Indian renewable energy company Piramal Enterprises Ltd. has agreed with Canada Pension Plan Investment Board (CPPIB) to form India’s first renewable energy-focused Infrastructure Investment Trust (InvIT) with an initial investment of $600 million.

As part of the deal, both Piramal Enterprises, the flagship company of the Piramal Group, and CPPIB will be co-sponsors of the proposed InvIT, initially allocating $360 million and $90 million, respectively.

The InvIT aims to purchase up to 1.5-2 gigawatts of stable and cash generating renewable assets on a hold-to-maturity basis, with a firm focus on diversification of both asset type as well as off-taker profile.

The two companies will hold 75 percent of the units with CPPIB holding 60 percent and Piramal PEL holding 15 percent. The two co-sponsors will seek to raise capital from other investors for the remaining 25 percent.