Canada Pension Plan Investment Board, Toronto, announced Friday that it and Brazilian energy company Votorantim Energia formed a joint venture to invest in power generation in Brazil.
Initially, the joint venture is acquiring two operational wind parks in Northeastern Brazil, one from Brazilian project developer Casa dos Ventos, and the other contributed by Votorantim Energia. Combined, the wind parks have 565 megawatts of installed capacity and already 3 billion reals ($911 million) in committed investments, according to a CPPIB news release.
The C$328.2 billion ($255.2 billion) CPPIB is contributing an initial roughly 690 million reals in equity to the venture. Over time, the venture expects to invest more than 3 billion reals. Funding sources could not immediately be learned.
"This transaction enables CPPIB to establish a footprint in the attractive Brazilian power generation market, which fits well with our overall power and renewables strategy and further diversifies the CPP fund," said Bruce Hogg, managing director, head of power and renewables, at the CPPIB, in the release. "Brazil is considered among the top renewable energy markets in the world, and as demand in the country grows, wind energy is expected to be one of the largest contributors to this new supply. We look forward to building a long-term partnership with Votorantim, a best-in-class local operator, to expand our joint venture. As power demand grows worldwide and with a focus on accelerating the energy transition, CPPIB will continue to seek opportunities to expand our power and renewables portfolio globally."
A CPPIB spokeswoman could not immediately be reached for additional information.