Canada Pension Plan Investment Board (CPPIB) has acquired a 6.3% stake in ReNew Power Ventures from the Asian Development Bank for $144m (€163.7m).

Founded in 2011, ReNew Power is an Indian renewable energy developer and operator with clean energy capacity diversified across wind, utility-scale solar and rooftop solar power-producing assets.

Asian Development Bank made an equity investment in ReNew Power during its early days in July 2014.

Scott Lawrence, the managing director and head of fundamental equities at CPPIB, said: “This transaction aligns well with our overall power and renewables strategy, further diversifying the CPP Fund.”

“India’s overall power industry continues to grow and we see solar and wind as attractive clean energy sources to meet the country’s growing demand for electricity.”

At September 30, 2017, CPPIB’s investments in India amounted to C$6.1bn (€4.0bn).

Lawrence said CPPIB will continue to seek opportunities to expand its power and renewables portfolio as demand grows worldwide along the transition to renewables.

Sumant Sinha, the chairman and CEO of ReNew Power, said: “We are delighted that CPPIB has chosen to invest in ReNew Power, which is one of India’s leading clean energy companies.

“We are committed to transform our country’s energy portfolio and CPPIB’s investment in the company will further strengthen our resolve.”