In a statement, CDPQ said the planned fresh capital infusion will raise its equity interest in Azure Power from 41.4 per cent to 49.4 per cent. The transaction, if successful, will bring CDPQ’s total investment in the Indian solar power producer to about $315 million.
In October 2018, the Canadian pension fund manager had increased its stake in Azure Power to about 40 per cent by investing $100 million in the latter’s funding round. CDPQ Infrastructure Asia Pte Ltd. bought an additional 8 million shares in the offering to raise its stake to 40.3 per cent.
CDPQ expects its latest investment in Azure Power to be approved and completed by the end of this year.
In a separate statement, Azure Power announced the appointment of CDPQ South Asia infrastructure director Deepak Malhotra to its board. The Canadian investor now holds two board seats and is Azure Power’s largest individual shareholder, the Indian firm added.
Founded in 2008 by entrepreneur Inderpreet Wadhwa, Azure Power sells energy to government utilities, and independent industrial and commercial customers in India. The company has a pan-India portfolio of more than 3 GW spread across 23 Indian states.
The capital injection in Azure is part of CDPQ’s efforts to increase its carbon-neutral assets under management to C$32 billion ($24 billion) by 2020.
Last September, the pension fund signed an agreement to acquire a 40 per cent stake in CLP India for about $365 million in cash. CLP India, a wholly-owned subsidiary of Hong Kong-based CLP Holdings, is one of the largest renewable energy producers in India with an operational and committed capacity of around 1100 MW across wind and solar projects.
CDPQ is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As of 30 June 2019, it held C$326.7 billion ($245 billion) in net assets.