Piramal, CPPIB team up for $600 million renewable energy InvIT

Piramal Enterprises Limited and the Canada Pension Plan Investment Board (CPPIB) have signed an initial pact to co-sponsor a renewable energy-focused InvIT. The InvIT will have an initial corpus of $600 million (Rs 41.6 billion) with an option to increase it further. The CPPIB will contribute $360 million to this corpus while Piramal will put in $90 million. The trust will raise the remaining amount from other investors. The InvIT will seek to acquire up to 1.5-2 GW of stable and cash-generating renewable energy assets on a hold-to-maturity basis. The co-sponsors of the proposed InvIT, which claims to be the first such vehicle focused on renewables, will cumulatively hold 75 per cent of the units. Of this, the CPPIB will hold up to 60 per cent while Piramal will own up to 15 per cent. Piramal will be the sole investment manager and project manager for the proposed InvIT.