Caisse de depot et placement du Quebec (CDPQ), which is Canada’s second largest pension fund, has made an announcement regarding its entry into India. CDPQ has also chosen India as its first upcoming market and has made an investment of $150 million in India’s renewable energy sector for the coming three years.
According to Michael Sabia, president and CEO at CDPQ, “We believe India stands out as an exceptional country to invest in, given the scope and quality of investments opportunities. There is potential for strategic partnerships with leading Indian entrepreneurs and the current government’s intention to pursue essential economic reforms.”
CDPQ is planning to invest in India’s hydro, solar, wind and geothermal power assets. The investments will most likely be in the form of select partnerships with Indian renewable energy companies.
Anita Marangoly George, the former senior director of World Bank group’s global practice on energy and extractive will be heading CDPQ’s South Asia operation from New Delhi. The announcement has come at a time when CDPQ is already in discussions with other investors like State General Reserve Fund of Oman (SGRF) and Kuwait Investment Authority along with domestic players including Tata Power and ICICI Venture.
This is with the aim of entering into a joint venture platform for buying out troubled power assets in India. The combined investment from these investors amount to $650 million of equity for creating a dedicated pool of $850 million.
This marks it to be amongst India’s largest commitments from SWFs and pension capital in India till date. The platform is also going to raise further debt and make a war chest of $4-5 billion for funding large buyouts of stressed power plants based on specific opportunities.
