Canadian Pension Plan Invests in Brazilian Power

Canadian Pension Plan Invests in Brazilian Power

Chamber Articles Category: Industry News Post Date: 12/21/17 Source: Chief Investment Officer By: Michael Katz
Article Content

The Canada Pension Plan Investment Board (CPPIB), which invests the assets of the C$328.2 billion ($255.1 billion) Canada Pension Plan, has formed a joint venture with Brazil’s Votorantim Energia to invest in the Brazilian power generation sector.

“This transaction enables CPPIB to establish a footprint in the attractive Brazilian power generation market, which fits well with our overall power and renewables strategy and further diversifies the CPP Fund,” Bruce Hogg, CPPIB’s head of power and renewables, said in a statement.

The joint venture’s first acquisitions are two operational wind parks in Northeastern Brazil: Ventos do Araripe III from Brazilian project developer Casa dos Ventos, and Ventos do Piauí I, which was contributed by Votorantim Energia into the joint venture. CPPIB is initially contributing approximately R$690 million ($209.4 million) in equity, and the joint venture expects to invest more than R$3 billion in operational and development assets in the sector.

“The renewable energy sector is an attractive, expanding market that will require major investments from the private sector now and in the coming decades,” said Fabio Zanfelice, president of Votorantim Energia. “By joining with a strong partner such as CPPIB, we have expanded our capacity and accelerated our growth plan in this segment with an investor that shares our vision for the business,”.
Read Full Article