The assets, currently owned solely by Santander, will be transferred to a new company owned equally by all three parties, which is expected to close within the first half of 2015 subject.
"This investment directly supports our focus on investing in platforms that provide access to development opportunities globally," said Andrew Claerhout, Senior Vice-President, Infrastructure at Teachers'.
Santander, PSP Investments and Teachers' intend to invest significant additional amounts in the new company over the next five years.
The portfolio includes wind, solar and water infrastructure assets located in seven countries that are operating or in development. The portfolio will be managed by an experienced team led by Marcos Sebares.
"This investment fits well with our strategy of deploying capital in sizeable opportunities that offer long term revenues and growth potential along with solid partners. It also allows PSP Investments to continue to develop its portfolio of private energy assets while contributing to environmentally sustainable energy production," said Bruno Guilmette, Senior Vice-President, Infrastructure Investments at PSP Investments.
Ontario Teachers' Pension Plan and the Public Sector Pension (PSP) Investment Board are partnering with Banco Santander to jointly acquire a portfolio of renewable energy and water infrastructure assets in a deal worth in excess of $2 billion.