Two Canadian pension funds to buy renewable energy assets from Banco Santander

Two pension funds of Canada – Ontario Teachers’ Pension Plan and the Public Sector Pension Investment Board (PSP Investments) – have agreed to jointly buy a portfolio of renewable energy and water infrastructure assets from Banco Santander, in a transaction worth more than $2bn.

This portfolio comprises wind, solar and water infrastructure assets in seven countries, which are either operating or under development.

The two funds will set up a firm with Banco Santander and the ownership of the assets will be equally divided.

The deal is subject to approvals from regulatory authorities. The deal is likely to close in the first half of 2015.

Marcos Sebares, CEO of the new entity, said: "A combination of Santander, which has consistently been voted the greenest bank in the world, and two investors, such as PSP Investments and Teachers’, who have a long history of sustainable investing, marks the beginning of a new phase in the development of our company into one of the world’s leading renewable energy investment companies.

"We have a strong balance sheet and long term investment strategy, with a mandate from shareholders to grow the new company over the next five years."

The sale of assets by Banco Santander was led by its Asset & Capital Structuring team of 30 people. This team will manage the acquired portfolio and lead investments in the new global renewable energy and water platform.