The International Finance Corporation (IFC) and IFC GIF Investment Company have sold their 19.4% stake in Indian independent renewable energy producer Azure Power Global Limited for $219 million. It has been purchased by OMERS Infrastructure, the infrastructure investment arm of Ontario, Canada based pension fund OMERS.
The stock purchase agreement by OMERS Infrastructure makes it a stakeholder in the Indian company with an asset base of 2 GW of operational capacity and another 5 GW under construction or awarded. The transaction is expected to close in early August 2021.
Explaining the rationale behind this investment, OMERS Infrastructure's Executive Vice President and Global Head Annesley Wallace said, "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."
OMERS Infrastructure also said it will continue to explore additional promising opportunities in India and throughout Asia Pacific as the bid for Azure Power demonstrates its strong global interest in 'high-quality renewable power and energy transition assets'.
New York Stock Exchange (NYSE) listed Azure Power is streamlining its business to focus on its core activity of utility scale solar, while divesting the stake in its rooftop solar portfolio in April 2021 (see Azure Power Sells Non-Strategic Rooftop Solar Portfolio).
OMERS Infrastructure joins other international investors as Caisse de dépôt et placement du Québec (CDPQ), Société de Promotion et de Participation pour la Coopération Économique (PROPARCO), and Netherlands Development Finance Company (FMO) in backing Azure Power.
OMERS Infrastructure holds GW level solar power capacity in the US after its portfolio company Leeward Renewable Energy acquired 10 GW AC project development platform from First Solar, Inc. in the US (see First Solar Selling US Project Development Business).