Ontario Teachers’ to Invest $805 Mn of NextEra’s Renewable Energy Projects

Ace global investor Ontario Teachers’ Pension Plan Board  (Ontario Teachers’) has said that it has signed an agreement to invest approximately $805 million in a convertible equity portfolio financing with NextEra Energy Partners.

Ontario Teachers’ said that it is committed to the investment as part of the sale of renewable energy assets from NextEra Energy Resources, which is a subsidiary of NextEra Energy Partners.

The official statement of the company held that approximately 2 GW portfolio comprises four newly constructed and nine operating wind, solar and energy storage assets, which are geographically diversified across U.S. power markets.

Ontario Teachers’ mentioned that the RE assets have in place long-term power purchase agreements with diversified, investment-grade counterparties.

This investment is the second in many years by Ontario Teachers’ with NextEra Energy and NextEra Energy Partners, following on the acquisition of a direct interest and convertible equity portfolio financing agreement originally announced in November 2021.

“We are pleased to build on our partnership with NextEra Energy Resources and NextEra Energy Partners, a world leader in renewable energy generation, and to make another significant investment in a portfolio of high-quality wind and solar energy assets,” said Chris Ireland, Senior Managing Director, Greenfield and Renewables at Ontario Teachers’.

Ireland also added, “This portfolio of assets based across the U.S. is a strong complement to our existing portfolio and gives us additional exposure to the U.S. market.”

Ontario Teachers’ also informed that the investment is being made by the Greenfield and Renewables team, which is part of the Infrastructure & Natural Resources department at Ontario Teachers’.

The current investments include development-focused platforms such as Cubico Sustainable Investments, Anbaric Development Partners, Equis Developments and Corio Generation, as well as a direct ownership stake in a portfolio of operating assets alongside NextEra Energy Resources. Total pro-rata capacity of the Greenfield and Renewables portfolio equals approximately 5.6 gigawatts.

Ontario Teachers’ expects to close the transaction later this year or in early 2023, subject to customary closing conditions and receipt of certain regulatory approvals.

Ontario Teachers’ Pension Plan Board claims to be a leading global investor with net assets of $242.5 billion as at June 30, 2022.

It invests in more than 50 countries in a broad array of assets.