Canada Pension Plan Investment Board (CPP Investments) is providing €200m alongside a consortium of banks to help clean-energy projects investor Sosteneo close its acquisition agreement with Enel.
In March, Sosteneo, the newly created investment company majority owned by Generali Investments, said it was investing €1.1bn to co-own a company created to develop and operate a portfolio of projects mainly composed of battery energy storage systems in Italy alongside the projects’ owner Enel.
At the time Sosteneo said its Fund 1 was investing the capital to gain a 49% interest in Enel Libra Flexsys in a deal that would giev Enel Libra Flexsys an enterprise value of around €2.5bn once the company completed its investment cycle.
In the latest update, Sosteneo said to support the acquisition around €200m in mezzanine financing was being provided by CPP Investments through the Canadian investor’s CPPIB Credit Investments arm.
Sosteneo is also being supported with about €900m in senior financing from a consortium of banks including BayernLB, BBVA, BNP Paribas, Bank of China, Crédit Agricole CIB, Caixa Bank, Cassa Depositi e Prestiti, ING, Societe Generale CIB and SMBC Bank.
Umberto Tamburrino, managing partner/CEO and CIO Europe at Sosteneo, said: “The financial closing of Enel Libra Flexsys is a major milestone, and we are pleased to be delivering investments of this calibre for the benefit of our clients.
“Adding flexibility and strength to Italy’s grid is vital for the integration of more renewable generation.”
Geoffrey Souter, managing director, head of real assets Credit at CPP Investments, said: “Battery energy storage systems and open-cycle gas turbines are two flexible and reliable solutions to support Italy’s energy transition efforts.
“We are pleased to be partnering with Sosteneo on these projects by providing long-term and flexible capital, which we believe will provide a promising source of risk-adjusted returns for the CPP fund.”
To read the latest IPE Real Assets magazine click here.
