Canada Pension Plan Investment Board (CPP Investments) is providing 200 million euros in funding alongside a consortium of banks to help clean energy project investor Sosteneo close an acquisition deal with Enel.
In March, Sosteneo, a new investment company majority-owned by Generali Investments, said it would invest €1.1 billion to co-own, with project owner Enel, a company set up to develop and operate a portfolio of projects in Italy consisting mainly of battery energy storage systems.
At the time, Sosteneo announced that its Fund 1 was investing capital to acquire a 49% stake in Enel Libra Flexis, valuing the company at approximately 2.5 billion euros once the investment cycle is complete.
In its update, Sosteneo said mezzanine financing of around €200 million is being provided by Canadian investor CPP Investments through its CPPIB Credit Investments division to support the acquisition.
Sosteneo has also received senior financing support of approximately €900 million from a bank consortium including Bayern LB, BBVA, BNP Paribas, Bank of China, Crédit Agricole CIB, CaixaBank, Cassa Depositi e Prestiti, ING, Société Générale CIB and Sumitomo Mitsui Banking Corporation.
Umberto Tamburino, Managing Partner, CEO and European CIO at Sosteneo, said: “The completion of Enel Libra Flexis’ fundraising marks a major milestone and we are pleased to be able to undertake an investment of this magnitude for the benefit of our clients.
“Adding flexibility and strength to Italy’s power grid is essential to integrate more renewable generation.”
Jeffrey Sautter, managing director and 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 partner with Sosteneo on these projects, providing them with long-term, flexible capital which we believe will be a promising source of risk-adjusted returns for the CPP Funds.”
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