The Public Sector Pension Investment Board (PSP Investments) and Ontario Teachers' Pension Plan, two of Canada's largest pension investment managers, have announced that they will acquire, in equal proportions, Banco Santander, S.A.'s indirect interest in global renewable energy and water infrastructure company Cubico Sustainable Investments Limited. As a result, PSP Investments and Ontario Teachers' will remain the sole ultimate shareholders of Cubico, on a 50-50 basis.
Both parties are fully committed to supporting Cubico in achieving its investment mandate. The company's assets and investment activities will continue to be managed by Chief Executive Officer Marcos Sebares and his seasoned leadership team. The closing of the transaction is subject to customary closing conditions.
Headquartered in London, Cubico was established in May 2015. Its initial portfolio included 18 wind, solar and water infrastructure assets previously owned by Santander, representing a net capacity of 1.2 GW. Since inception, Cubico opened regional offices in London, Milan, Sao Paulo and Mexico City. It also successfully completed four acquisitions spanning four different countries, growing its total net capacity to 1.62 GW. The company's portfolio now comprises 22 wind, solar and water infrastructure assets in operation, construction or under development across eight countries (Brazil, Italy, Ireland, Mexico, Portugal, Spain, United Kingdom and Uruguay).
Guthrie Stewart, Senior Vice President and Global Head of Private Investments at PSP Investments, commented:
"Our increased participation in Cubico is aligned with PSP Investments' long-term investment approach and strategy to leverage industry-specific platforms and develop strong partnerships with liked-minded investors and skilled operators. We look forward to continuing supporting Cubico's growth strategy by providing the company with access to capital to facilitate development initiatives."
Andrew Claerhout, Senior Vice-President, Infrastructure at Ontario Teachers, said:
"We remain committed to supporting Cubico's management team as they execute on their strategy of delivering high returns in the renewables sector. Ontario Teachers' is proud to be supporting the continued conversion from hydrocarbons to clean and renewable sources of power. Cubico's flexible investment and acquisition approach fits well with Ontario Teachers' approach to private investments."
Marcos Sebares, Chief Executive Officer, Cubico, stated:
"Global investment in sustainable clean energy reached a new record in 2015, and Cubico's excellent local market knowledge and strong relationships will allow us to continue to create and capitalize on attractive growth opportunities. We see Ontario Teachers' and PSP Investments' joint acquisition of Santander's position as an important endorsement of our strategy and capabilities. We look forward to collectively leveraging our relationships and expertise to create value through the acquisition and operating excellence of renewable energy assets."