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Borealis Buys Stake in Four US Wind Farms from Spain’s EDP Renováveis

According to the press release, “EDP Renováveis S.A. (“EDPR”) has reached an agreement to sell 49% of the Class A shares in a portfolio of wind farm assets located in the United States to Borealis Infrastructure for US$230 million. The portfolio is comprised of four wind farms totaling 599 MW, all of which were installed between 2007 and 2008 and have long-term Power Purchase Agreements (PPAs) in place. EDPR will continue to own the remaining 51% of the Class A shares in the portfolio.

Borealis Infrastructure invests in and manages infrastructure investments on behalf of the Ontario Municipal Employees Retirement System (“OMERS”), one of Canada’s largest pension funds. Its large-scale assets in the energy sector include the recent acquisition of Michigan-based Midland Cogeneration Venture (“MCV”), the largest natural gas fired, combined cycle cogeneration plant in the United States.

“Our investment in this portfolio marks a significant commitment by Borealis to the renewables sector, and is the type of large-scale infrastructure asset we look for to generate stable and consistent returns for the pension plan. We look forward to working with the proven management team at EDPR, and see this transaction as the beginning of a long-term partnership,” said Michael Rolland, President and CEO of Borealis.

EDPR is the world’s third largest wind energy company. Through this transaction, EDPR is commencing the execution of its asset rotation strategy, which it announced as one of its core objectives earlier this year. This strategy involves selling minority stakes in mature projects that are operationally optimised and with a low risk profile. This will enable EDPR to crystallise the value of its projects’ future cash-flow streams and re-invest in the development of quality and value-accretive projects, while contributing to its self-funding growth objective.

“We are pleased to have gained a partner such as Borealis,” said Joao Manso Neto, EDPR Chief Executive Officer. “This partnership is a step toward securing a positive future for both EDPR and Borealis. We look forward to the continuation of this relationship as EDPR continues to grow.”

Barclays acted as financial advisor for Borealis, and Shearman & Sterling acted as legal advisor.

The transaction is subject to the customary regulatory approvals by the Federal Energy Regulatory Commission (“FERC”) and the Committee on Foreign Investment in the United States (“CFIUS”).”

Read more: OMERS Press Release

UNICEF and NBIM to Host Meetings on Children’s Human Rights

The United Nations Children’s Fund (UNICEF), a United Nations programme headquartered in New York City, has partnered with Norges Bank Investment Management (NBIM) to facilitate a series of meetings between companies to discuss issues surrounding children’s human rights.

According to the news release, “the network will facilitate dialogue between leading brands and retailers in the garment and footwear industry to strengthen children’s rights.”

NBIM is invested in many listed companies and have invited them to join a network to tackle these issues. Over the next two years, the organizations plan to hold three workshops as well as quarterly meetings surrounding these issues.

“Over time, we hope and expect that the network will contribute to improved market practices among companies and greater respect for children’s rights,” says Carine Smith Ihenacho, Global Head of Ownership Strategies, in a NBIM press release.

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SouthGobi’s CEO Arrested, CIC Struggles with Investment

The China Investment Corporation (CIC) has long struggled with its investments in coal assets, specifically in globally-listed coal miner SouthGobi Resources Ltd, which operates its flagship coal mine in Mongolia. In November 2009, CIC and SouthGobi Resources inked a convertible debenture deal. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Qatar Central Bank Deals with MSCI

MSCI, a stock index company whose benchmarks influence investor behavior, has tremendous indirect power impacting the stock markets of smaller economies. In 1988, MSCI released its emerging markets index, a now-widely-used benchmark for many institutional investors wanting access to growth markets. China and South Korea make up the majority of the benchmark, but smaller economies such as Poland, Chile and even Qatar make up other pieces of it.

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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