Canada Pensions Team With Spanish Bank to Create Sustainable Investment Company

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The Ontario Teachers’ Pension Plan, Canada’s Public Sector Pension Investment Board, and Spanish bank Banco Santander SA have combined forces and formed an investment company focused on renewable energy investments.

The firm, called Cubico Sustainable Investments, is backed by $2 billion in assets from the involved pension funds.

More on the partnership, from Bloomberg:

“Renewable and water infrastructure developments require decisive long-term investment and commitment,” said Chief Executive Officer Marcos Sebares, previously of Santander. “We’ve already built a strong pipeline of attractive assets.”

The aim is to double the size of Cubico within five years, targeting returns of at least 10 percent depending on the risk profile, geography and stage of project development, Sebares said in a conference call.

The $2 billion portfolio comprises 19 wind, solar and water facilities either operating or being built. Previously owned by Madrid-based Santander, the sites generate more than 1,400 megawatts and are in Brazil, Mexico, Uruguay, Italy, Portugal, Spain and the U.K. Company plans are to enter Peru and Colombia and to consider investments in offshore wind.

“With renewables technologies maturing, the sector is seeing increasing interest from institutional investors such as pension funds,” said Janis Hoberg, an analyst at Bloomberg New Energy Finance. “They may be particularly attracted by the yields offered by renewables projects in Europe thanks to current low interest rates and slowly diminishing policy risk.”

All three founding parties will hold equal ownership of the firm.

 

Photo by penagate via Flickr CC

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