Mumbai, September 17, 2022: Mahindra Group and Ontario Lecturers’ Pension Plan Board (“Ontario Lecturers’”) introduced right this moment a strategic partnership to capitalize on the rising renewables alternative in India and contribute in direction of the nation’s decarbonization ambitions. The events have signed binding agreements pursuant to which Ontario Lecturers’ will purchase a 30% fairness stake in Mahindra Susten Personal Restricted (“Mahindra Susten”) at an fairness worth of INR 2,371 crore (~USD 300 million).
The proposed transaction additionally envisages the organising of an Infrastructure Funding Belief (“InvIT”) in compliance with relevant rules of the Securities and Trade Board of India. The InvIT is initially proposed to comprise renewable energy belongings seeded by Mahindra Susten with operational capability of round 1.54 GWp. As a part of the proposed transaction, shareholder loans of INR 575 crore (~USD 73 million) superior by Mahindra Group to Mahindra Susten can be repaid.
On account of this transaction, Mahindra Group will obtain an influx of roughly INR 1,300 crore (~USD 165 million). Mahindra Group and Ontario Lecturers’ will collectively discover the sale of an extra 9.99% stake in Mahindra Susten by Might 31, 2023. Mahindra Group will deploy these funds, plus an incremental quantity of as much as INR 1,750 crore (~USD 220 million), into the enterprise and InvIT over the subsequent seven years.
Over the identical interval, Ontario Lecturers’ has dedicated to deploy an extra quantity of as much as INR 3,550 crore (~USD 450 million) into the enterprise and the InvIT.
This transaction will allow Mahindra Susten to construct a robust renewable power enterprise centered on photo voltaic power, hybrid power, built-in power storage and round the clock (“RTC”) inexperienced power vegetation.
Puneet Renjhen, Member of Group Government Board and EVP, Partnerships & Alliances on the Mahindra Group mentioned: “We’re delighted to welcome Ontario Lecturers’ as a strategic companion in Mahindra Susten. The partnership with Ontario Lecturers’ will allow the Mahindra Group to unlock worth within the renewable power sector with continued joint investments in direction of accelerated progress. The Mahindra Group goals to be Planet Optimistic by 2040 and the continued influx of affected person, long-term capital in our local weather optimistic companies is validation of our dedication to be a worldwide ESG chief.”
Bruce Crane, Senior Managing Director, Asia Pacific, Infrastructure & Pure Assets at Ontario Lecturers’ mentioned: “We’re happy to proceed making important investments in India and to amass a significant stake in Mahindra Susten, one in every of India’s main renewable power platforms. As a part of our local weather change technique, we’ve got dedicated to proceed rising our portfolio of inexperienced belongings across the globe with investments like Mahindra Susten. This strategic partnership marks the start of what we hope can be a long-term and mutually helpful relationship with the Mahindra Group.”
Deepak Thakur, Managing Director & Chief Government Officer, Mahindra Susten mentioned: “This partnership with Ontario Lecturers’ syncs with Mahindra Susten’s plan to considerably develop our inexperienced power portfolio throughout photo voltaic PV, wind, and power storage. This platform will leverage our confirmed expertise in growth and deep data of the Indian power market. Our in-house EPC capabilities honed throughout renewable power tasks executed globally guarantee Mahindra Susten engineers and delivers superior performing belongings, thereby enabling our power platform to supply clear, dependable energy to tens of millions of individuals throughout India.”
Chris Eire, Senior Managing Director, Greenfield Investments & Renewables, Infrastructure & Pure Assets at Ontario Lecturers’ mentioned: “We’re proud to put money into one in every of India’s main renewable power platforms. We imagine the renewable power sector in India is poised for important progress within the coming years as India works in direction of its formidable clear power targets, and are excited to companion with the Mahindra Group on this initiative.”
As per the up to date Nationally Decided Contributions (“NDCs”) of the United Nations Framework Conference on Local weather Change (“UNFCCC”), India now stands dedicated to decreasing the emissions depth of its GDP by 45% by 2030 from its 2005 ranges, and obtain about 50% cumulative electrical energy put in capability from non-fossil fuel-based power sources by 2030. These are concrete steps in direction of reaching India’s long-term purpose of reaching net-zero by 2070. Consequently, the Indian renewable trade is anticipated to proceed to develop considerably in the long run.
It’s anticipated that Ontario Lecturers’ acquisition of a 30% shareholding in Mahindra Susten, which is topic to closing circumstances together with regulatory approvals, will full over the subsequent few months. The InvIT can also be anticipated to be fashioned throughout FY 2024 topic to requisite approvals.
Avendus Capital acted as monetary advisor and Khaitan & Co. acted as authorized advisor to the Mahindra Group for the transaction. Ambit acted as monetary advisor and Cyril Amarchand Mangaldas acted as authorized advisor to Ontario Lecturers’ for the transaction.
About Mahindra Group
Based in 1945, the Mahindra Group is likely one of the largest and most admired multinational federation of corporations with 260,000 staff in over 100 nations. It enjoys a management positioning farm tools, utility autos, info expertise and monetary providers in India and is the world’s largest tractor firm by quantity. It has a robust presence in renewable power, agriculture, logistics, hospitality and actual property.
The Mahindra Group has a transparent deal with main ESG globally, enabling rural prosperity and enhancing city residing, with a purpose to drive optimistic change within the lives of communities and stakeholders to allow them to Rise.
Be taught extra about Mahindra on www.mahindra.com / Twitter and Fb: @MahindraRise/ For updates subscribe to https://www.mahindra.com/news-room
About Mahindra Susten
Mahindra Susten is Mahindra Group’s renewable power platform, which incorporates one of many main renewable engineering, procurement and building (“EPC”) companies (capability constructed of over 4 GWp), an impartial energy producer (“IPP”) enterprise with round 1.54 GWp of operational photo voltaic vegetation unfold throughout a number of states in India, and plan to have a major photo voltaic growth pipeline. The IPP photo voltaic portfolio is unfold throughout 5 key states in India and is backed by long-term energy buy agreements – roughly 75% of belongings are backed by central authorities entities and the remaining with distribution corporations backed by state governments. In addition to its personal in-house administration group with intensive capabilities throughout each EPC and IPP domains, Mahindra Susten additionally advantages from photo voltaic plant operations and upkeep providers and different technical experience of Mahindra Teqo Personal Restricted. For extra info, go to https://www.mahindrasusten.com
About Ontario Lecturers’
Ontario Lecturers’ Pension Plan Board (Ontario Lecturers’) is a worldwide investor with web belongings of C$242.5 billion as at June 30, 2022. We put money into greater than 50 nations in a broad array of belongings together with private and non-private equities, fastened revenue, credit score, commodities, pure sources, infrastructure, actual property and enterprise progress to ship retirement revenue for 333,000 working members and pensioners.
With places of work in Hong Kong, London, Mumbai, San Francisco, Singapore and Toronto, our greater than 350 funding professionals deliver deep experience in industries starting from agriculture to synthetic intelligence. We’re a totally funded outlined profit pension plan and have earned an annual total-fund web return of 9.6% for the reason that plan’s founding in 1990. At Ontario Lecturers’, we don’t simply make investments to make a return, we make investments to form a greater future for the academics we serve, the companies we again, and the world we reside in. For extra info, go to otpp.com and observe us on Twitter @OtppInfo
Media contact info:
Mahindra & Mahindra Ltd.
Pramuch Goel
VP & Head – Group Communications
Mahindra Group
E-mail: goel.pramuch@mahindra.com
Ontario Lecturers’ Pension Plan Board
Dan Madge
Director, Exterior Communications
+1 416 419 1437
media@otpp.com
