The Public Sector Pension Investment Board is moving to become the largest shareholder in U.S.-based Pattern Energy Group Inc. as part of a series of transactions aimed at supporting a major expansion of the renewable energy company.
According to the details announced yesterday, the pension fund will purchase about 10 per cent of Pattern Energy stock and will co-invest US$500 million in projects acquired by the renewable energy company.
“With these exciting initiatives, we have created an extraordinary opportunity to continue our growth,” said Mike Garland, chief executive officer of Pattern Energy.
“Pattern Energy’s investment in the development business allows us to improve our margins and secure access to a tremendous pipeline of new projects,” he added. “The strategic relationship with PSP Investments provides us with increased capital flexibility for new opportunities, while allowing us to meet our growth targets.”
Read: Caisse invests $90M in Quebec wind farm
Pattern Energy’s investment plans include developments focused on wind, solar, transmission and storage projects in the United States, Canada and Mexico. “This relationship grants us access to a portfolio of projects and a source of new assets in renewables, and we believe it will provide good and stable returns for our contributors and beneficiaries,” said Patrick Samson, managing director for infrastructure investments at PSP Investments.
The co-investments include the acquisition of a wind project in each of British Columbia and Quebec. The federal public sector pension fund will also acquire a 49 per cent stake in a Texas wind project from Pattern Energy. Pattern Energy has a portfolio of 20 wind power facilities, including the two projects it’s acquiring, with a total owned interest of 2,736 megawatts in the United States, Canada and Chile.
In other investment news, the Ontario Teachers’ Pension Plan is investing in recruitment company CareerBuilder. According to a news release issued yesterday, an investor group led by Apollo Global Management, along with the Ontario Teachers’ Pension Plan, will acquire a majority of the outstanding equity interests in CareerBuilder.