The Caisse de dépôt et placement du Québec and the Public Sector Pension Investment Board are supporting an investment deal in which alternative asset manager Apollo will invest $6.5 billion for a 50 per cent stake in an offshore wind project.
The transaction for Ørsted’s Hornsea 3 — a U.K.-based ongoing clean energy project — has commitments from the Caisse in the form of equity and debt backing, while PSP Investments is committed to the transaction’s debt financing, according to a press release.
Apollo Funds will invest roughly $3.25 billion upon close, with a remaining $3.25 billion provided upon the project meeting construction and development milestones over the years.
Read: AIMCo backing offshore wind energy acquisition, Caisse investing in data centre project expansion
PSP Investments updated its green bond framework as a response to changes in the sustainable bond markets. S&P Global Ratings maintained a medium green assessment under its analytical approach to the updated framework.
The bonds create proceeds to promote the development of environmental and climate benefits aligned with the organization’s broader mandate of long-term value creation.
In other news, Oxford Properties Group, the real estate investment arm of the Ontario Municipal Employees’ Retirement System, signed a new lease expansion with Eli Lilly & Co. for a life sciences building located in Boston.
According to a press release, the lease expansion for the 150,000-square foot building will support Lilly’s long-term growth plans in Boston’s Seaport District.
“We’ve grown alongside Lilly over the years, supporting their evolving needs and ambitions in Boston’s thriving life sciences ecosystem,” said Matthew Polhemus, vice-president of leasing at Oxford, in the release.