Britain's pension fund USS invests 225 million euros in Spanish renewables
17/05/2021 11:48
MADRID, May 17 (Reuters) - British private pension fund
Universities Superannuation Scheme (USS) said on Monday it has
invested 225 million euros ($273 million) to take a 50% stake in
Bruc Energy, which develops renewable energy projects in Spain
and Portugal.
The inflow of cash into renewables in the Iberian peninsula
is an encouraging sign for the industry after recent setbacks.
Renewable power group Opdenergy shelved an initial public
offering two weeks ago citing "unstable conditions in markets"
and shares of rival Econener ECNER.MC plummeted 15% on their
first day of trading a few days earlier.
Bruc Energy, which was created in Spain by Canadian pension
fund OPTrust and Spanish businessman Juan Bejar, is planning to
develop solar projects in Spain and Portugal for a total
potential capacity of 4,000 megawatts.
"The long-term nature of solar and the steady returns make
renewables attractive to a pension scheme needing to pay
pensions for years to come", Gavin Merchant, USS's co-head of
direct equity, said in a statement.
The transaction was advised by Royal Bank of Canada (RBC),
Greenhill and Nomura.
($1 = 0.8229 euros)
(Reporting by Cristina Galán, editing by Inti Landauro and
Emelia Sithole-Matarise)
((Cristina.Galan@thomsonreuters.com;))