OMERS Infrastructure to Pay $219 M for 19.4% Stake in Azure Power

Budget reactions

Canada-based OMERS Infrastructure recently announced that it has signed a Stock Purchase Agreement to acquire from International Finance Corporation and IFC GIF Investment Company I an approximately 19.4% stake in Azure Power Global Limited, for a total consideration of approximately US$219 million.

Founded in 2008, Azure Power is a leading independent renewable power producer located in India, with an asset base of approximately 2 GW of operational capacity and around 5 GW of capacity under construction or awarded. It was also the first, and only India focused solar developer to be listed in a US (NYSE) stock exchange.

“This agreement to invest in Azure Power demonstrates OMERS strong global interest in high-quality renewable power and energy transition assets, as well as our interest in India as an investment destination and Asia-Pacific more broadly,” said Annesley Wallace, Executive Vice President and Global Head of OMERS Infrastructure.

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“This transaction directly supports our mission of building a strong portfolio of well-run assets that will help pay pensions to our members over the long term,” she added.

“Azure Power’s vision is to provide affordable, clean energy in an efficient, sustainable and socially-responsible manner. OMERS is proud to be working with the management and our fellow investors to help Azure Power achieve its goals,” said Prateek Maheshwari, Managing Director, Asia, OMERS Infrastructure.

“The closing of this transaction would mark our second direct infrastructure investment in India, following our 2019 investment in the IndInfravit toll road platform. In support of our goal of prudently diversifying OMERS investments across global markets, we will continue to explore additional promising opportunities in India and throughout Asia-Pacific,” he added.

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OMERS Infrastructure’s global renewable energy holdings include Leeward Renewable Energy, a growth-oriented renewable energy company that owns and operates a portfolio of 22 renewable energy facilities across nine U.S. states, totaling more than 2 GW of installed capacity. Leeward is headquartered in Dallas, Texas.

The transaction is expected to close in early August. Ambit Private Limited acted as financial advisor to OMERS Infrastructure.

Besides its existing portfolio, Azure was one of the two winners of the manufacturing lined solar tender, where it won an allotment for 4 GW of solar capacity and a 1 GW solar manufacturing set up. Prospects or this project have brightened this year, after being stuck for lack of buyers at discom level for the power to be generated.