Mahindra Group and Ontario Teachers’ Co-Sponsor India’s Largest Renewable Energy Listed InvIT with Offer Size of ₹2262.8 Crore ( $273 Mn)

Mahindra Group, a leader in farm equipment, utility vehicles, information technology and financial services businesses in India, and Ontario Teachers’ Pension Plan Board (Ontario Teachers’), a leading global institutional investor, through their associates have co-sponsored an Infrastructure Investment Trust (InvIT) holding assets in the renewable energy space. The InvIT, “Sustainable Energy Infra Trust” (SEIT), is India’s largest InvIT in the renewable energy space (The report entitled “Renewable power market in India” dated December, 2023, prepared by CRISIL). SEIT has raised primary capital of Rs. 1365 Crore (USD 165 Million) as part of the initial offer of units (Offer). The Offer was subscribed by marquee global and Indian investors, including Asian Infrastructure Investment Bank (AIIB). SEIT made its debut on the National Stock Exchange of India Limited today.

As announced earlier, and in line with the commitment made by Mahindra Group and Ontario Teachers’, SEIT has been set up to focus on the growth of the renewable energy sector in India at scale. SEIT holds operational renewable power assets seeded by Mahindra Susten with a generation capacity of approximately 1.54 GWp.

The capital of Rs. 897.8 Crore (USD 108 Million) made available to Mahindra Susten by way of an offer for sale of units of SEIT as a part of the Offer will position Mahindra Susten for the next level of growth and development of a future pipeline of renewable energy assets. Mahindra Susten and SEIT, as a part of their growth strategy, have entered into a Right Of First Offer (ROFO) arrangement, in compliance with InvIT Regulations, whereby renewable energy assets developed by Mahindra Susten will be offered for sale to SEIT. As previously announced, both Mahindra Group and Ontario Teachers’ had committed to invest up to Rs. 3050 Crore (USD 368 Million) and Rs. 3550 Crore (USD 428 Million) respectively into Mahindra Susten and SEIT.

Speaking about the announcement, Dr. Anish Shah, Group CEO & MD, Mahindra Group, said, “The Government of India has laid down ambitious targets to reduce the carbon intensity of the nation’s economy by 45% by the end of the decade and achieve net-zero carbon emissions by 2070. The listing of SEIT is a testament to the Group’s ability to attract strong external investors. Mahindra Susten has ambitious plans to achieve 5X growth in the next five years and will contribute to both the Groups’ and the nation’s green energy goals. The renewable energy sector will continue to grow and attract investments and we are excited about both Susten’s and SEIT’s role in developing the right ecosystem.”

Deb Hajara, Managing Director, Infrastructure & Natural Resources at Ontario Teachers’ added, “We are proud to co-sponsor the SEIT alongside our partner Mahindra Susten and to contribute to India's renewable energy ambitions. This milestone not only reinforces our commitment to invest globally in green and transition assets but also demonstrates the attractiveness of renewable energy investment opportunities in India.”

Avinash Rao, CEO of the Investment Manager to SEIT, commented, “Renewable energy is a core sector for India with significant growth potential. The Government’s focus on renewable and sustainable energy makes the industry very attractive for investments thereby enabling further growth of our portfolio. An InvIT as an instrument is investor friendly and attracts significant interest in operating renewable energy and infrastructure investments in India. We are delighted to have strong sponsors such as Mahindra Group, Ontario Teachers’ as well as AIIB and other marquee investors on board for current assets, and for building our pipeline of future assets.”

Kotak Mahindra Capital Company Limited, Axis Capital Limited and Avendus Capital Private Limited acted as Placement Agents to the transaction. Cyril Amarchand Mangaldas acted as legal counsels to SEIT and the Sponsors. S&R Associates acted as legal counsels to the Placement Agents.

About Mahindra

Founded in 1945, the Mahindra Group is one of the largest and most admired multinational federation of companies with 260000 employees in over 100 countries. It enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India and is the world’s largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality, and real estate. The Mahindra Group has a clear focus on leading ESG globally, enabling rural prosperity and enhancing urban living, with a goal to drive positive change in the lives of communities and stakeholders to enable them to Rise.

About Ontario Teachers’

Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of $249.8 billion as at June 30, 2023. We invest in more than 50 countries in a broad array of assets including public and private equities, fixed income, credit, commodities, natural resources, infrastructure, real estate and venture growth to deliver retirement income for 336,000 working members and pensioners.

With offices in Toronto, London, Hong Kong, Singapore, Mumbai, San Francisco, New York, Dallas, and São Paolo, our more than 400 investment professionals bring deep expertise in a broad range of sectors and industries. We are a fully funded defined benefit pension plan and have earned an annual total-fund net return of 9.4% since the plan's founding in 1990. At Ontario Teachers', we don't just invest to make a return, we invest to shape a better future for the teachers we serve, the businesses we back, and the world we live in. For more information, visit otpp.com and follow us on LinkedIn.

Xpressbees May Raise $100 Mn from Canada's Ontario Teachers’ Pension Plan, At $1.4 Bn Valuation

Pune-based e-commerce logistics company, Xpressbees, may get $100 million as an investment by Canada's Ontario Teachers’ Pension Plan Board, one of the largest pension plans in the world, said a recent report by Economic Times. 

Citing people privy to the matter, the ET report further said that Ontario Teachers' Pension board may buy a stake in Xpressbees at about a $1.4 billion valuation. The capital raised would potentially be used for purposes including acquisitions.

Since last year, the Canadian pension fund was targeting investments in India and even opened an office in Mumbai in September of last year.

With this investment, if materialize, The Ontario Teachers' would join other Canada based pension funds bodies — Canadian public pension funds CPP Investments and Caisse de dépôt et placement du Québec (CDPQ).

Ontario's Teacher's fellow CPP Investment had invested in Indian companies including Byju's and Xpressbees's competitor Delhivery.

Ontario Teachers' had also in FTX, through its Teacher's Venture Growth platform, after the collapse of FTX the Canadian pension board wrote-off the entire investment, in the end of last year.

Earlier in April, Xpressbees had raised $40 million in funding from Khazanah Nasional Berhad (Khazanah), the sovereign wealth fund of Malaysia.

Founded by Amitava Saha and Supam Maheshwari, co-founders of SoftBank-backed baby products startup FirstCry. The duo decided to spin off the firm’s logistics unit into a separate entity in 2015. The e-commerce logistics company has also counts Alibaba as its investor along with Investcorp, Norwest Venture Partners, Gaja Capital, SAIF Partners, IDG Ventures India, NEA, Vertex Ventures, and Valiant Capital.

Ontario Teachers’ partners with Edelweiss Group to Invest $350 Mn (˜INR 2600 crores) in Indian private Credit

• Long term partnership in Edelweiss Alternative Asset Advisors (EAAA), market leaders in Alternatives

• Focused on performing and distressed opportunities in the Indian credit investment space

Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”), Canada’s largest single-profession pension plan, and Edelweiss Group, India’s leading diversified financial services conglomerate, are pleased to  announce that Ontario Teachers’ has signed an agreement for an investment of USD 350 million (˜INR 2600 crores) with  Edelweiss Alternate Asset Advisors’ (“EAAA”), the largest private debt manager in India with assets under management of approximately USD 3 billion (˜INR 23,400 crores). The agreement represents a long-term partnership between Ontario Teachers’ and Edelweiss Group that will focus on performing and distressed private credit investment opportunities in the Indian market.

Despite the global economic uncertainty amidst the current pandemic, this commitment from Ontario Teachers’ is a strong endorsement of the Indian alternative asset management space as well as the robust and unique private debt platform built by EAAA.  

Speaking about the development, Rashesh Shah, Chairman and CEO, Edelweiss Group said, “This partnership comes at a time when there is a thrust towards empowering and enabling India to become a global manufacturing hub as vocalised by the Government’s ‘Atmanirbhar – self reliance’ vision. The need for long term patient capital in India presents a huge opportunity for private debt managers. At Edelweiss, we have built deep capabilities in this space and I am honoured by the trust placed in us by the highly respected Ontario Teachers’ team.”

 Confirming the partnership, Gillian Brown, Senior Managing Director, Capital Markets at Ontario Teachers’ said, “We are pleased to enter into a long-term partnership with Edelweiss Group, which has a proven track record and demonstrated ability to originate, underwrite, structure and realize on private credit investments in India. This partnership will further expand our presence in, and provide additional insights on, the important Indian market.”  

Ben Chan, Regional Managing Director, Asia Pacific at Ontario Teachers’ noted, “We are excited to invest with Edelweiss to bolster our exposure to the Indian credit market.  This is an important milestone in our ambition to build multi asset class exposure to India’s long-term growth story.  As a global investor, Ontario Teachers’ hopes to leverage our select list of partners including Edelweiss for local insights and acumen as we navigate to grow profitably in this important market.”

 Venkat Ramaswamy, Vice Chairman & Executive Director, Edelweiss Group added, “We are humbled by the faith that an institution such as Ontario Teachers’ has placed in our ability to manage credit investments and in our strong governance, especially at a time when overall global economic sentiment is subdued. We believe, the opportunity for Alternative Investment funds in India is large, given the need for credit, and we are confident that this partnership will enable Ontario Teachers’ to capitalize on the best of private debt opportunities available in India.

About EAAA

EAAA, the largest Indian private debt platform, is a part of the decade old Edelweiss Asset Management business which manages customer assets aggregating approximately INR 1,00,000 crores across Alternatives, Mutual Funds and Distressed Assets. EAAA focuses on providing high quality investment opportunities in alternatives in India, catering to international and domestic investors. Since inception, it has been attracting investments from some of the largest global insurance companies and pension funds.

About Ontario Teachers’ 

The Ontario Teachers' Pension Plan Board (Ontario Teachers') is the administrator of Canada's largest single-profession pension plan, with $204.7 billion in net assets (all figures at June 30, 2020 unless noted). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.5% since the plan's founding in 1990. Ontario Teachers' is an independent organization headquartered in Toronto. Its Asia-Pacific region office is located in Hong Kong and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded as at January 1, 2020, invests and administers the pensions of the province of Ontario's 329,000 active and retired teachers.