Canadian pension fund OTPP to buy 30% stake in India’s Mahindra renewables assets

Individuals stroll previous a display displaying Mahindra and Mahindra brand earlier than the beginning of a information convention in Mumbai, India Could 30, 2016. REUTERS/Danish Siddiqui

MUMBAI, Sept 18 (Reuters) – Canadian pension fund Ontario Lecturers’ Pension Plan has agreed to purchase a 30% stake for 23.71 billion rupees ($297.5 million) in Indian automaker Mahindra’s (MAHN.NS) renewable energy belongings, an trade submitting confirmed.

“It will allow the Mahindra Group to unlock worth within the Renewable Vitality Sector and it’ll proceed to speculate together with Ontario Lecturers’ to assist realise its twin targets of accelerated progress and world management in ESG,” Mahindra stated within the trade submitting on Saturday.

Pension and infrastructure funds usually purchase stakes in renewable power technology tasks, tempted by the predictable long-term returns.

Earlier this yr, Reuters reported that OTTP had agreed to speculate as much as $1 billion in a brand new offshore wind enterprise launched by Australia’s Macquarie Group Ltd, to develop tasks world wide. learn extra

($1 = 79.6860 Indian rupees)

Reporting by Shilpa Jamkhandikar; Enhancing by Emelia Sithole-Matarise

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