Canada Pension Plan Investment Board (CPPIB), which is close to taking a controlling stake in SB Energy Holdings, is exploring the possibility of bringing these solar assets under an infrastructure investment trust (InvIT), said two people aware of the development.
InvITs are trusts that manage income-generating infra assets, typically offering investors a regular yield and a liquid method of investing in such projects. They can be either publicly listed on stock exchanges or privately placed to a few investors.
CPPIB’s plan comes against the backdrop of its partnership with Piramal Enterprises Ltd to co-sponsor a green energy-focused InvIT in India.
Japan’s SoftBank Group Corp. is selling its controlling stake in SB Energy, which has a 7.7GW solar power portfolio in India, for an estimated $525 million. SoftBank owns 80% of SB Energy, with the rest held by Bharti Enterprises Ltd. Bank of America and Barclays are handling the sale process.
“The plan being explored is to bring the solar assets of SB Energy under an InvIT,” said one of the two people mentioned above requesting anonymity.