Home Energy assets Ontario Teachers: Mahindra Group and Ontario Teachers’ Announce Strategic Partnership

Ontario Teachers: Mahindra Group and Ontario Teachers’ Announce Strategic Partnership

Mahindra Group and Teachers’ on Saturday announced the formation of a strategic partnership under which they will invest approximately Rs 4,550 crore to develop the future portfolios of Mahindra Susten Private Ltd (MSPL), a renewable energy platform from the first. “Mahindra Group and Ontario Teachers’ have agreed to invest an amount of approximately Rs 4,550 crore to develop MSPL’s future portfolio,” a regulatory filing reads.

The filing showed that under MSPL, a subsidiary of Mahindra Holdings Ltd (MHL) and 2452991 Ontario Ltd (2OL) signed a share purchase agreement and a shareholders agreement as part of the strategic partnership.

The agreements provide for the sale of MHL’s 30% stake in MSPL to 2OL for a cash consideration of Rs 711 crore, it showed.

Mahindra Holding Ltd (MHL), a subsidiary of Mahindra & Mahindra Ltd, will sell an additional 9.99% of the paid-up share capital of MSPL to any other investor or to 2OL or any of its affiliates (Ontario Teachers’) on 31 May 2023, showed regulatory filing.

He also said the covenants also provide for the formation of an Infrastructure Investment Trust (InvIT) with MSPL and Ontario Teachers’ as sponsors, which will hold the identified operational assets housed in Special Purpose Vehicles (SPV Project) .

Mahindra Group and the Ontario Teachers’ Pension Board have formed a strategic partnership to capitalize on India’s growing renewable energy opportunity and contribute to the country’s decarbonization ambitions , a statement from the company said.

The parties have signed binding agreements under which Ontario Teachers’ will acquire a 30% stake in MSPL at a net worth of Rs 2,371 crore (USD 300 million).

The InvIT is initially proposed to comprise renewable energy assets seeded by Mahindra Susten with an operational capacity of approximately 1.54 GWp.

Under the proposed transaction, shareholder loans of Rs 575 crore (USD 73 million) advanced by Mahindra Group to Mahindra Susten will be repaid.

As a result of this transaction, Mahindra Group will receive an inflow of approximately Rs 1,300 crore (USD 165 million), he said.

Mahindra Group will deploy these funds, plus an additional amount of up to 1,750 crore rupees ($220 million), across the business and InvIT over the next seven years, it said.

During the same period, Ontario Teachers’ has pledged to deploy an additional amount of up to Rs 3,550 crore ($450 million) in the business and InvIT over the next seven years, it said. he also stated.

This transaction will enable Mahindra Susten to build a strong renewable energy business focused on solar power, hybrid power, integrated energy storage and 24-hour green power (“RTC”) power plants.

Puneet Renjhen, Group Board Member and Executive Vice President, Partnerships and Alliances, Mahindra Group, said in the statement, “The partnership with Ontario Teachers’ will enable the Mahindra Group to unlock value in the education sector. renewable energy through continued joint investment towards accelerated growth.”

Bruce Crane, Senior Managing Director, Asia-Pacific, Infrastructure and Natural Resources at Ontario Teachers’, said in the release, “This strategic partnership marks the beginning of what we hope will be a long-term and mutually beneficial relationship with the group. Mahindra.

Deepak Thakur, Managing Director and Chief Executive Officer, Mahindra Susten, said in the release, “This partnership with Ontario Teachers’ aligns with Mahindra Susten’s plan to significantly grow our green energy portfolio through solar PV. , wind and energy storage. This platform will leverage our proven development experience and in-depth knowledge of the Indian energy market.”

Mahindra Susten is the renewable energy platform of the Mahindra Group, which includes one of the main engineering, procurement and construction (“EPC”) activities of renewable energy (built capacity of more than 4 GWp ), an Independent Power Producer (“IPP”) company with approximately 1.54 GWp of operational solar power plants spread across several states in India and plan to have a significant solar development pipeline.

The Ontario Teachers’ Pension Board is a global investor with net assets of C$242.5 billion (in Canadian dollars) as of June 30